THE COMMONWEALTH.

Waikato Times, Volume 113, Issue 18849, 20 January 1933, Page 2

THE COMMONWEALTH.

YEAR REVIEWED.

HEARTENING INDICATIONS. RETURNS OF DIVIDEND LIST. (Empire Press Union). CANBERRA, January 10. At the beginning of 1932 Australian 4 per cents were quoted at £92 10s on the local market. At the end of the year they were worth £lO2. On the London market just before the announcement of the Premiers’ Plan Australian 5 per cents were quoted at £63 10s. At the end of 1931 they were worth £96 and at the end of 1932, £lO5. These comparative figures are an illustration, in one respect, of Australia's economic advance.

The resolute observance of the Premiers’ Plan —an agreement for public economy and financial reconstruction between Ihe Federal and the six State Governments —has given a feeling of confidence that is expressed in more hopeful spending and enterprise. Although there has been an increase, chiefly within Australia, of the floating debt—due to the use of bank creidts for public purposes — the estimated aggregate deficit of the seven Australian Governments for 1932-3 is expected to lie well within the figure fixed by the Premiers’ Plan, which was £9,000,000 Australian currency. Two and a half years ago the Governments were faced with a probable total deficit of £40,000,000. At that time estimates of the Federal Government’s deficit ranged up to £20,000,000. For 1932-33 it is expected that there will be a surplus of £3,500,000. Had it not been for the further suspension of the interest and sinking fund payments on Australia’s war debt (to Great Britain) of £89,000.000, the anticipated Federal surplus would have disappeared because of Australia’s liability for a payment exceeding £ 1,000.000 sterling. As will be noted from the letters referring to Slate affairs, Savings Bank deposits, building construction and general production have all shown a consistently advancing improvement. Company balance sheets, generally, show much belter returns. The Broken Hill Proprietary Company, one of Australia’s greatest industrial and mining enterprises, iias returned to the dividend list after an absence from it of three years. Australia’s War Bill. The sound position of Australia’s finances is the more notable because of the huge payments that have still io lie made on account of the war. To date ihe War lias cost Australia £770,000,000 (Australian currency, now 25 per cent off sterling), of which £467,000,000 lias been spent since the Armistice. Up to the present £110,000,000 has been paid in war pensions, £253,000,000 in interest, and £27,000,000 in war gratuities. With the exception of £89,000,000 still owing as war debt to Great Britain, all the money spent has been raised within Australia, and interest, pensions and gratuities have been paid on due dates from current revenue.

Overseas Loan Conversion. In November last Australia converted a New South Wales loan of nearly £13,000,000, maturing in London, at 3J per cent. During 1933 it will he possible to convert at three months’ notice London loans amounting to £84,000,000. These loans bear interest rates of from 5 to 64 per cent. In view of the cheaper money it is expected that conversions will be possible at a maximum of i per cent,., which will relieve Australian Budgets to the extent of £1.470,000 a year. Air Mall Service to England. The Federal Government is calling for tenders for an air-mail service between Australia and Singapore, to link up with the Imperial Airways Service between Great Britain and India. Tenders are also being invited lor extensive air services within Australia. £16,000,000 Concession. Commonwealth Ministers have conferred with local representatives of investors who undertake to invest £15,000,000 pounds in return for land, pastoral, mining and agricultural concessions in the Northern Territory, the sparsely populated part of northern Australia, containing an area of about 520,000 square miles. The feature of the proposal is a land grant railway from Bourke, New South Wales, north-westerly to Port Darwin, the Territory’s port. Those seeking the concession want the • Commonwealth Government to guarantee their bonds. If that request be adhered to it is by no means likely that thero will be an agreement.