BRUCE’S CANDOUR IMPRESS BRITISH FINANCIAL HEADS.

Star (Christchurch), Issue 18008, 19 November 1926, Page 11

BRUCE’S CANDOUR IMPRESS BRITISH FINANCIAL HEADS.

By Telegraph.—Press Assn.—Copyright. Aus. and N.Z. Cable Association. LONDON, November 17. The “Morning Post” saj’s the bankers and commercial men present were manifestly impressed by Mr Bruce’s straight-forwardness and directness and by the equally forcible observations on the same subject by Mr Andrew Williamson, whose past speeches show that he holds no brief for Australian Governments, but who is disturbed by the general attack on Australian finances. Mr Bruce has practically undertaken that fuller information shall be given in prospectuses. He seemed almost to foreshadow that New South Walefe would be joining the Loan Council. Bankers and investors would welcome such a step. The city editor of the “Daily Telegraph” says: It is fortunate that Mr Bruce is here to deal first hand with the criticism of Australian finances, and we congratulate him on removing some misconceptions. There has never been any question that a rapidly growing country like Australia has to, develop in advance of immediate needs, but there is a general impression that some “reproductive” expenditure has pot always been prudent. Though the railways pay working expenses and the cost of maintaining the lines in good repair, and meet nearly all the interest charges on their cost, they still result in a loss to the States. As an instance. New South Wales has a deficit of £1,274,000. Lenders will keenly watch the workings bf-the Loan Council. If it controls the borrowings of the various States, it will remove doubts. We are assured that future prospectuses will contain more information and if each" loan carries a sinking fund extinguishing it at. a due date there will be less room for criticism of the financial policy of the States arid of the Commonwealth.