“TIGHTER BELTS"

Gisborne Herald, Volume LXVI, Issue 20101, 22 November 1939, Page 14

“TIGHTER BELTS"

AUSTRALIA WARNED POSSIBLE EFFECTS WAR EXPORT RETURNS .OVERSEAS FUNDS DRAIN (Elec. Tel. Copyright—United Press Asso.l *— (Reed. Nov. 22, 9 a.m.) CANBERRA, Nov. 22. The Australian Acting-Treasurer, Mr. P. C. Spender, issued a warning against over-estimating the effects that increasing export prices will have on Australia’s oversea funds. He also suggested that the community should prepare for “some tightening of the belt.” : He pointed out that the export price level was 10 to 15 per cent better than last year, but about 5 per cent below that of 1937-38, when Australia had • a serious adverse balance of payments. Australia’s volume of exports would be large, but it was doubtful, he added, how much could be m'arketed owing to shipping difficulties. Moreover, under war conditions the community could not expect a continuation of private investment from overseas on the scale hitherto enjoyed, “In these circumstances and, without considering the present war expenditure abroad, there is a distinct possibility of an unfavourable balance for the year of perhaps £15,000,000. There is also a distinct possibility of its being considerably lower,” said Mr. Spender. “Our commitments for the air training scheme are at present unknown and are also likely seriously to affect our London funds apart from other adverse possibilities.”