ECONOMIC OUTLOOK

Wanganui Chronicle, Volume 74, Issue 230, 29 September 1931, Page 10

ECONOMIC OUTLOOK

DOMINION AND AUSTRALIA. SPEEDY RECOVERY EXPECTED. LONDON FINANCIAL OPINION. The belief that both Australia and New Zealand would recover speedily from the effects of the economic depression is strongly held in financial circles in London, according to the impression formed by Sir Edward Macartney, Agent-General for Queensland in London, who arrived at Wellington by the Corinthic on Wednesday, and joined the Maunganui, on route to Syd ney, at Auckland on Friday. As ho left England on August 14, Sir Edward was not disposed to comment on the dramatic series of events, including the formation of a Coalition Government and the suspension of the gold standard, which has since occurred. However, ho said that for a considerable period there had been an anxious feeling in regard to the general situation, and apparently that tin-

easiness had been in part contributed to by the Australian position. A Friendly Feeling. “The development of the Australian crisis was gradual, and caused much anxiety in financial and manufacturing ciivles in Britain,” said SSir Edward. “That anxiety was heightened from time to time by the news of the political difficulties which arose, and whic< were subsequently centred more or loss on New South Wales. However, there is a strong belief in London financial circles that the Australian and New Zealand positions will quickly right themselves, and that, but for the unfavourable circumstances of the last year or two, both countries would have been well on the road to recovery by this time. “There is a very friendly feeling in London toward Australia and New Zealand. If we square our ledgers, I am satisfied any moneys we may require will be available to us on reasonable terms. 1 am also quite sure that there will be capital available for private enterprise. There is a growing demand in England for Empire products, and that is an indication of the Old Country’s desire to assist the Dominions.”

While the political parties were still divided on the question of tariffs when ho left Loudon, and the question of preference for the Dominions was, therefore, necessarily deferred, Sir Edward thought there was a general desire among all parties to create a better situation. The times called for combined patriotic action to right the present position. England had a tremendous task to deal with in its unemployment problem. The large increase in unemployment during the past year had imposed a heavy strain on the Treasury in connection with dole payments. That system appeared to have been much, abused, and it had contributed in substantial measure to the unsatisfactory position of the British Budget. Sir Edward, who has been prominent in Queensland politics for many years, being Leader of the Opposition at one period, took up his appointment as Agent-General in London in July, 1929. Ho was unable to state whether he would return to London, but said he -was on leave and would be discussing “future arrangements” with the Premier of Queensland, Mr. A. E. Moore, on his return to Brisbane next week.