A STRAIGHT TALK

Hokitika Guardian, 22 August 1930, Page 5

A STRAIGHT TALK

BY SIR OTTO NIEMEYER. ON AUSTRALIAN FINANCE. (Australian Press Association) (Received this day at 9. a.m.) MELBOURNE, Aug. 22. Sir Otto Niemeyer addressing the conference of State Premders and treasury officials reviewed the financial, economic position of Australia. His address made a great impression ou members

In. submitting his review of Australia’s ; position, Sir Otto said Australia is off the budget equilibrium, off the exchange equilibrium, and is faced bv considerable unfunded and maturing debts, both internal and external, in addition to which she has on her hands a very large programme of loan works, wherefor no financial provision has been made. The only alleviation of the gloomy picture is that apart from thiity-six (millions sterling of unfunded de'bt, Australia by a great piece of luck has no external maturities m ld'3o and 1931. That means in effect that she has a maximum period of two years wherein to put her house in order. Australia’s credit- is at a low ebb, and is, on a six per cent basis in Australia itself, and rather more abroad. It is, iri fact, lower than any of the Dominions, nob excluding India and even lower than some protectorates, A certain rate of increase of output per capita in other countries in recent, years has been much greater than in Australia. Sir Otto Niemeyer continued that Australia could not.wish to remain for ever under the regime of emergency tariffs, and rationed exchange. -lie must emerge from that position and show signs of progress towards an emergence. Australian standards had 'been pushed too high relatively, to Australian productivity and to the general world conditions. Tf Australia did not face that issue, she would not be able to keep even those standards which, she might hope to carry by taking timely action. The difficulties, he concluded, were not beyond control, but demanded considered progress and united action and had to be squarely faced.