AUSTRALIA'S DEBTS

Dominion, Volume 13, Issue 267, 5 August 1920, Page 5

AUSTRALIA'S DEBTS

SERIOUS FINANCIAL OUTLOOK. Mr. Herbert B. Lysaght, chairman. °f directors of tho Australian Bank of Com-, merco, Ltd., sounded a warning on the financial outlook (it the annual meeting of the shareholders of tho bank. "Sinco peace was declared," he said, "continued reference Ims been made as to tho necessity for economy in every direction, with tho view of restoring the finances of the world to a sound oasis. The bank's directors think that every suitable opportunity should ho taken to emphasise this need for rigid economy. The Federal and State loan indebtedness at tho present time amounts to nearly ,£800,000.000, and r|it only the Federal, but practically all the Stato Governments are in the market for further loans. The rate of interest payable on a largo portion of tho money borrowed is a high one, and nil conversions, of which there will be somo JM00,000,000 during the next few years, must from present indications tie made at oven higher nitos. If we also take into consideration the amount of borrowings by municipal and other public bodies, It must be evident to all chat unless our finances' are very prudently handled the interest payable may become so heavy ft burden on the community that the natural expansion of tho States in production, trade, and commerce will bn .very adversely affected, and serious vc 6ults lo all classes of the community must follow. The fostering of our pas toral and agricultural resources has a very distinct bearing on the question, and the solution of tho present difficult position must chiefly be looked for from the country. Every effort, therefore, should be mudo to make the path ot those on the land as easy as possible, arid to encourage In overy possible way oji increase in tho agricultural, pastoral, and mineral production of tho Commonwealth."