PAYMENT IN KIND

Hokitika Guardian, 28 September 1931, Page 6

PAYMENT IN KIND

AUSTRALIAN COMMODITY

LOAN.

LONDON, September 16. !

Leading financial business men interested in Australian finance consider it likely that Australia will revive the project of a commnuity loan, which is tantamount to paying interest to Britain in kind. They point out that, even if Australia’s favourable trade balance continues at the present figure, it is insufficient to meet interest charges abroad, which amount to £36,000,000 a year, since it is unlikely that wool and wfieat prices will rise.

The alternative to asking Britain to accept reduced interest is a British agreement to advance money to meet loan charges against connnrdities shipped to Britain. There is a growing feeling in financial circles and in the House of Commons that Australia’s endeavours to balance international accounts by restricting imports will only prolong the slump in Britain. • City men draw at fr*“'T.’’

to the enormous growth of imports of primary products from Russia. British exports to Russia are a negligible They -argue th t -a. -commodity loan would stimula'i? Australian agriculture and. British industry and •would remove the danger of partial fault on the.part of Australia.