BRITISH CAPITAL IN AUSTRALIA

Ashburton Guardian, Volume 70, Issue 107, 18 February 1950, Page 5

BRITISH CAPITAL IN AUSTRALIA

“FLOW WILL NOT BE , CHECKED” / LONDON, Feb. 16. The City of London has learned with interest of the statement by the Prime Minister of Australia (Mr Menzies) that revaluation of the Australian £ has not been before the Federal Cabinet, but it doubts whether Mr Menzies’s guarded statement will reverse or even check the flow of capital to Australia, says Reuter’s financial editor. < Leading dealers in Australian securities say that revaluation will eventually he inevitable to check the internal inflation caused by the high export prices of wool and wheat. The opinion in some banking quarters is that revaluation is still an open question. This, they commented, was a rough and ready method of checking internal inflation/ Canada, Sweden and New Zealand had found that it brought some, unexpected difficulties. Canada and Sweden later reversed their action. New Zealand’s foreign exchange reverses had moved in sad contras to Australia’s. , ' Tens of millions of pounds of capital must have moved to Australia in recent months. Up to to-day a rush of British money to Australia was reported, some of 4it into Australian internal loans. The possibility of revaluation was not Australia s only magnet for capital. Many stockbrokers have included Australian securities amongst their favoured hedges against a Labour victory m the elections.