AUSTRALIAN FINANCE

Hokitika Guardian, 16 February 1931, Page 5

AUSTRALIAN FINANCE

REHABILITATION PROPOSALS. (United Press Association— By Electric Telegraph.—Copyright.) (Received 10.25 a.m.) LONDON. February 15. A financial commentator writes:— Since tile proposals for the rehabilitation of Australian finance are now a question of politics rather than finance, it. is difficult to pronounce on the subject without entering tile political arena. Bankers and financiers here are disinclined towards public utterances being most chary of the appearance of unwarrantable interference in what section Australian opinion might regard as largely a domestic concern. Nevertheless financial opinion in London definitely condemns Mr Theodore’s proposals scarcely less than Mr Lang’s, though after the first shock .file latter was realised to be impossible. Thus the Commonwealth is in sore straits through the world slump in commodity pri-es, coupled with the orgy of borrowing in 1922-28. The operation of economic laws blocks the royal road to prosperity, and the only exit is drastic cute ill Government expenditure; the reduction of national ebsts find production; the abandonment of the. traditional policy of overseas borrowings. While Australian politicians fail to face the realities they cannot be helped, and thus far their utterances indicate they are too frightened bv their constituencies to adopt drastic measures, or are not capable of realising the situation. London, pending an alteration in the position, cannot offer assistance which it would otherwise give most willingly. Whatever were Mr Scull ins motives for re-iiritat-ing Mr Theodore, it lias greatly damaged his prestige here, since financiers are already familiar with Mr Theodore’s views and always regarded ,t.hem as utterly unsound, apart altogether from political convictions.