PROMISE OF HARD DAYS AHEAD

Chronicle (Levin), 3 December 1947, Page 5

PROMISE OF HARD DAYS AHEAD

Received Tuesday, 7.0 p.m. S YDADY, Dec. 2. . Despite the surpri.se of London iinan cial observers concerning statemepu made by Alr. Cliifiey on the serious ture of the dollar position, most Austraiians are accepung as gospel the words of their leader. Tlie main regson for this is that AI r. Cliifiey lias a reputation for impassivity and refusal to panic. All political correspondents ugree that the gravity of the position can not be exaggerated and what criticism iliere is, is levelled at Air. Cliifiey at the vague nature of the varning. l'redict ions are that though kl r. Cliifiey 's statement carried portents ominous enougli, the picture he wiil give Cabinet in a few days will be even more startling. Correspondents emphasise, firstly, that restric.tions on imports from the Cnited States and L'unada have virtually lialted all Australian plans for expansion and developnient; secondiy, that an austerity period looms in practically everything but food; and tliirdly, that molorists can expect a return of war time petroi rationing. Further frightening possibiiities are listed by the political correspondent of Ihe Svdney Sun as: — " Firstly, a conifilete collap.se in Creat Britain and France is peiilousJv close in both countries. France has gone liavwire and sterling is unwanted in a world craving doilars. "Secondiy, a sudden calamitous drop in ovorseas pricos which would l>e ruinons to the primary industries now sustaining Australia. j "Thirdlv, the failure of the United States to get aid .to Western Furope in time to allow it to buv what Britain urgently needs to sell. " The main defencos against a depression are stated by informed authorities to be tlie continuance of record crops and high jiriees, the vastly improved capacity of secondary industries and the recognition by world leaders of the need for ensuring the staliility of countries which can export food. Members of the (iovennnent sav that when import licences were called in recently and examined by an interdepartmental committee, it was found that licences al ready had exeoeded the Treasury estimate iiy more than £20, 000., 000. Though many licences were then caneelled, tliose covered by irrevocable letters of credit and those on the ossontial list were allowed to stand. They rejiresent a considorable sum about which notliing can be done. Two alternatives to further drastic cuts remain. Australia may apply to the Tnternational Yfonetar.v Fund for tenpiorary accommodation or may renuest a direct loan from the United States. Britain has alreadv tried both eourses. ]Mr. Cliifiey has deelared himself against a loan because of the interest rates charged, but there are others who eonsider this the wiser eourse.