AUSTRALIAN BORROWING

Hokitika Guardian, 19 February 1925, Page 4

AUSTRALIAN BORROWING

A heavy total of Australian debts "ill fall due for repayment during this year, and, in addition, fresh borrowing is proceeding. The “Australasian Insurance and Banking Eeeord” states that the Commonwealth has to provide for IJ ]K>r cent, war loans fall-

ing due on December Id, the outstanding amount of which is £68,800,700. Setting aside London maturities, 16', millions, tlie State loans maturing in Australia amount to £37,602.374 ; but this total includes £18.000,000 due to the Commonwealth Government in respect of loans made by it to the States after the outbreak of war by means of an expansion of tile note issue. The loan of £10.300,000 floated two months ago by the Commonwealth Government on behalf of the six States was intended to provide for the Australian portion of their borrowings in respect of new money for public works expenditure during 1924-25 leaving 28 millions as the London portion of tlie.se borrowings. Other public bodies were not bound by the restrictions decided upon at the conference between the Commonwealth and State Governments. Looking at the whole volume of prospective borrowing, the journal asks how long a policy of building up debt i without a proportionate increase in population is to la? continued. Recent seasons in Australia have generally been favourable, the wool and wheat markets are at a high level, and large public expenditure of loan money helps to promote employment and certain classes of trade. But such a conjuncture of affairs is not necessarily permanent.