THE FINANCIAL TANGLE

Hokitika Guardian, 31 October 1924, Page 4

THE FINANCIAL TANGLE

Mr George Crowley writes to the “Sydney .Morning Herald”:—Matters are tangled enough in all conscience as it is, but when it collies to a serious writer on the subject deploring the possibility nf it booming wool clip ami a bounteous wheat harvest the situation is becoming grotesque. A couple of years’ drought might help matters. At the risk of being grossly heretical, might I venture a suggestion which probably has occurred to the average schoolboy / So far, I have not seen it referred to in print. There is popularly supposed to ho a credit in London in favour of the Commonwealth, amounting, roughly to filty millions or so. The gold is not there to remit; that seems to he accepted as undeniable. The mention of introducing Bank of England notes and making them legal tender in Australia gives the economic specialist a spinal douche; the Only solution they tell us, is the importation of goods. The money cannot he remitted here, apparently because of the exchange difficulties. Ti would cost Ci per cent, possibly Cd pci - cent; it blight even ruii up to the prohibitive price of L 5 per eeiit. Mcll supposing it did. T should Know a little oil the subject 1 am presuming to write about and I venture to state the opinion with hated breath, that it might he well worth while for Austicilia at the present juncture to get these fifty millions here in order to get them even If it did cost two millions. We are straining every nerve now to raise ten millions in Australia, ltvoij day or so 1 get a pleading letter Irom Dr Earl Page, asking il I 'mill help along the good cause. Judging hy the lranfit- efforts we are all making to urge the other fellow to putin his share, we seem to find the task a fairly difficult one. And we want at least another fen millions of money badly to put our roads in good order. Good roads mean everything. How on earth is the importation Rolls Boyce ears and Collitrd and Collard pianos going to assist us in building these much needed roads. We need a further live millions for housing purposes, the "hole of the money to he spent in Australia. The shortage of houses is an outstaiulimr evil in almost every State in the Commonwealth. The importation of silks and satins and woollen goods may possibly help us to build houses .suitable for summer weather, hut I must admit that the dillienlty is ton much for me. I prefer to see them built of more durable material obtained on the

spot. Trader-. "“"t iinaiuinp, builders are caper tn civet houses, larmcrs are ready and willing to l>lmil more wheat, Imt alien any of these people ask for linaiieial assistance they are curtly told "no money." And what litttle theie is available is rushed like the supper table at a mayoral banquet. I surioiis rates of S per cent, 1) per cent, and even 10 per cent are freely paid for the accomodation. On this aspect of the case, at all events, I can speak with authority. Anyway, there is no use in sitting down wriupinp mu' hands. We have forty or lily millions of moiiev at the other end of the world, where it is yieldin'' uothinp, and its proper place is here where it has been earned. The situation is piquant in the pathetic helplessness and incompetence o! those responsible for the fiasco.” Ihe "Herald” remarks : —"Hut .Mr Crowley does not let us into the secret of how he would brine to Australia the titty million sterling of which he speaks.” In a later issue Mr Crowley replies : —".I list One filial broadside. The magician's wand is not necessary. little horse sense is. 'I here is allepcd to be a surplus of Australian nioiiov ill l.ondoli. 'I here certainly is not (he slightest doubt about a shortage of Australian currency in Australia. We are told, amidst all sorts of eontlietinp ami contradictory reasons for tlie present trouble, that if KopInml had usd back to the pold standard all would have been well. Ihe pold would have been shipped here to settle the debt. Well, it may be years and years before Kurland pets hack to the void standard, and meanwhile, our credit at the other end—if seasons keep pood and prices remain firm, which most of us sincerely hope--is likely to increase still mole and more, l.ondoli is williu;' to pay her debt, and I have never yet heard one solid reason why Hank ol Knpland notes are not as pood currency now as they were when I was able to pet a premium on them in every Kuropean capital fifteen vears npo. One would really think it was Herman marks we were asked to temporarily honour ns currency in the Commonwealth, lint if one ventures the suppestioll. which seems obvious, nolle so poor to do him reverence.”