FEDERAL FINANCES.

Waikato Times, Volume 107, Issue 18023, 19 May 1930, Page 7

FEDERAL FINANCES.

AN AMERICAN REPORT. NO NEED FOR PESSIMISM. PROTECTION, OF CREDITORS. United Press Assn.—Elec. Tel. Copyright. NEW YORK, May 17. The Foreign Department of . the National City Company has issued a report of a survey of the Australian financial situation, in which it cautions holders of Government bonds againsi pessimism, because .of the recent fluctuations in the market. The report makes the point that Australia in recent years has placed too great a dependence on overseas borrowing in furtherance of programmes of economic development which should have been undertaken more slowly. It continues with a detailed exposition of the financial situation, and says: “ In the piist few years the Commonwealth Government, by and with the co-operation of the respective State Governments, has very materially strengthened the machinery for the redemption of the public debt, and for more stringent control of fresh borrowing.” The report concludes: “ One of the favourable factors in the operations of Australian public financing in the past year has heen the record redemptions of debt. The whole problem of the liquidation of the public debt of Australia has been placed on a much sounder basis, through joint sinking funds having been established. “ There is every evidence that Australia Is doing her best to protect the interests of her creditors, and we feel that Austalian bonds will soon attain their usual levels, with enhanced reputation aad security.”