FINANCIAL DRIFT IN AUSTRALIA

Dominion, Volume 13, Issue 202, 21 May 1920, Page 7

FINANCIAL DRIFT IN AUSTRALIA

ACTING PEDESAL TREASURER'S WARNING. A grave warning against .piling up further huge finaucial obligations in the existing conditions of the Commonwealth finances was issued by the Acting Treasurer (Sir Joseph Cook) in the House of Representatives last week. Members were complaining that a new amendment to the Repatriation Bill would only allow .£250,000 to be spent in assisting soldiers to undertake co-operative enterprises. Sir Joseph Cook pointed out that under measures passed this session for assistance to soldiers the Commonwealth' would bo faced with tho task of finding at least an additional <£0,000,000 for next financial year. It was time, he added, that something was said about the finances of the country. Ever so many economy suggestions wore heard, inside Mid outside tlio House, yet every day proposals were made whic.lv would run into millions of money if adoptod.' The position was very serious indeed. It was, therefore, necessary that there should ho some deiinito liipit to expenditure on repatriation purposes. The Repatriation Bill was a great deal more liberal than any promises made at the general elections. The Government could not commit itself to unlimited expenditure, either in regard to this Bill or any other measure. In the Prime Minister's pronouncement to the country ho said tliat an additional expenditure of 45050,000 was to be provided for in the Repatriation Bill. Yet the incroase in war .pensions alone would run into ,£l,250,000. Under the War Gratuity Bill the Government would have to find .£l,500,000 next year. They would also liave to provide a further 5i,500,000 for increased assistance to soldiers and their dependants. The increase in war pensions would cost 06X,250,000, whilst old-age pensions would involve an additional <£750,000, and the expenditure 011 tho Repatriation Department would require at least another .£1,000,000, and awards of the Arbitration Court would mean at least £750,000. The expenditure under Bills passed this session involved an increase of ,£6,000,000 or next year. Tjiejl there was the increase in the cost of running all Departments, the increased cost of materials, wages, and upkeep. Where was all this money coming from? For repatriatiofi and other war purposes the additional expenditure would run to ,£7,000,000 or ,£9,000,000. _ Land settlement alone would cost this year over ■£8,000,000, the housing problem ,£5,000,000, vocational training, sustenance, etc., ,£5,000,000 i in all, a sum of =£19,250,000. The outlook for next year was .£21,000,000 upon tho same items, and the outlook for war pensions during the same period was between ,£0,000,000 and .£7,000,000. He suggested that tho Commonwealth waa doing a fair and genorous thing by the soldiers. They could not take every man who came back and set him up in business. No country could afford to do it, and no country had attempted to do it. Altogether the Commonwealth \vas faced with the problem of having to raise, in addition to all this revenue, about ,£30,000,000 of fresh loan money during next year. The financial outlook was just fts serious as it' could be. i.vgvenuo was coming in well, and the financial position was sound but it would require careful, handling. They could just as easily mako a mess of things es not.