CAPITAL LEAVING AUSTRALIA.

Press, Volume LXVI, Issue 20101, 3 December 1930, Page 10

CAPITAL LEAVING AUSTRALIA.

INVESTORS LOOKING TO NEW ZEALAND. IMPRESSIONS OF MR H. HOLLAND, M.P. The flight of capital from Australia is actually talcing place, according to Mr H. Holland, M.P., for Christchurch North, who returned yesterday from a visit to Adelaide, Melbourne, and Sydney. "I do assure you that hundreds of thousands of pounds are leaving the Commonwealth," Mr Holland said to a representative of The Piiess who interviewed him yesterday. "While the charge to get money to New Zealand is £4 10s per £IOO, to get money to England costs £9 10s per £IOO. To get over this charge numbers of people are buying produce of all kinds, shipping it to the countries which they desire to visit, and drawing cash on their arrival. A gentleman 1 know, who represents an important firm in Sheffield, England, has £.1500 that his firm wants very badly in England, but as the result of his best endeavours all that he was allowed to send was £SOO. Many people who have large sums to send out of the Commonwealth are investing in the £27,000,000 conversion loan, in connexion with which the rates of interest are 6 per cent, for two years, 5J per cent, for ton years, and 5J per cent, for 20 years—rates that will materially assist in the flotation of the loan." Mr Hoi.and added that different people had asked him to bring back sums varying from £I2OO to £12,000 to Invest in the Dominion. He had put these people in touch with bankers in the Dominion.

Australia's Problems. "Australia, like most other countries, is faceil with three very serious prob' iems, and it is difficult to say which is the most serious. There is, first, the low prices ruling for primary products; second, very heavy losses on the railways; and third, unemployment. It is stated that the losses on the railways in the prist five years amount to £31,000,000. Enormous sums are being spent weekly to relieve the distress among the unemployed; but it seems that nothing can be done to increase the prices of primary products—such as wheat and wool. Record Wheat Yield. "I was tremendously impressed with the condition of the crops I saw when travelling in tho train —some of them easily would give 30 bushels to the acre. Large areas of wheat were being cut green for fodder. A record yield is anticipated, about 220,000,000 bushels. It is being produced at considerable loss. It is estimated that wheat cannot be grown under 4s per bushel, and the prevailing price is 2s; as low as Is lid was quoted in South Australia.

High Taxes and Bates. "Taxation and local body rates are high in South Australia. For municipal purposes the basis of rating is on the letting value. One property, of which I have knowledge, has a letting value of £IO4O per annum. The City Council rates it at 3s 2d in tho £ letting value, and the Government water sup ply rate, which is payable whether or not water is used, is 2s in the £ letting value, or a tot ' of 5s 2d in the £." "Amongst the best class of citizen,' - Mr Holland said in concluding, "Mr Scullin seems to have gained a great deal of favour by his firm stand and declaration that Australia will honour her obligations."