AUSTRALIAN FINANCE

Hokitika Guardian, 7 February 1930, Page 6

AUSTRALIAN FINANCE

[United Press Association.—By Electrio Telegraph.—-Copyright. ]

LONDON, Feb. 5.

The “Morning Post’s” city editor says there is a better tone characterising Australian stocks, while here an economic crisis must be of long duration The situation is being quietly and soberly considered. It is ndt without points of reassurance. Some of the causes responsible for the present conditions are of a character only rcvoalablc to the people of Australia by actual experience because formerly the most friendly English criticism seems to have beien misunderstood in Australian political, not in financial circles. The present situation, especially in regard to exchange is aggravated by a heavy call in Australia’s chief exports especially wool, but there is a general consensus of opinion among the banks and financial houses, receiving advances from Australia, that the situation is materially contracting Australian imports. While this is not encouraging to Britain’s trade it is undoubtedly necessary in the interests of Australia, moreover a curtailment is more likely to affect tho United States than any one, she having pressed luxury articles on long credit system upon Australia for some time.

MR. SOULLIN’S STATEMENT

(Received this day at 8 a.m.)

CANBERRA, Feb. 6

In a further joint statement tonight, Messrs Scull in and Theodore said it was unthinkable that Ausralia intended to postpone interest payments, which would l>e be met with unfailing regularity and promptiude in the future as in the past. The! exchange position would bo much alleviated by the action agreed upon between the Commonwealth and Australian trading banjos,* for the immediate export to London of a considerable sum in gold. The statement also referred to the possibility of . Australia seeking funds in overseas markets to cover portion of the loan maturing in Australia during the present year. It had always been the policy of Australia to deal with local loans without recourse to external markets and that policy would bo followed bn +’ l is occasion.