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Hokitika Guardian, 13 February 1933, Page 4

There have been numerous references to the fact that, Australia has optional conversion ingill' in resnect of loans amounting to about £83,030,*"' 0 domiciled in London RPcrssing the question recent 1 v Professor R. T 5. Copland expressed Ih.> opinion that there is a powerful rnue fW immediate action in the interests of London as well as

of Australia. “It in ay bo ■doubted whowicr wo in jUfeuaim, let atone Ijuikiou auuioriiiie.s, loal'ise liow urgent the problem may t.'ocumc,” be ( wrote. “Australian credit stands at ;i Higher level tlnui at any time in the past lcK.it' years. Hie •ue...<»..Siaativ>.. of good lititn on her part compares very favourably with tpo ellortt of nuitiy oi lier count rieis, but we must be clear why we have been able to meet our obligations. Partly as a result of cur enei'ts we have been able to sustain expo it production, and even to increase l it suixstu'ntiially. At prosent it is estimaiued that tlie volume cn oar exports wad be from 2.5 to 50 per cent, higher this year than before the depression. 'this result is in part canned by the splendid seasons we have experienced in the past two years. Yet we arc at present importing more than we can afford from our current hulano3i of payments. We may be down cd the current international accounts by £4,010,000 to £8,000,000 for the year. What will the position he in a bad seal-on? Clearly, adverse weather conditions would quickly reel uto our income from exports by 20 per cent., leaving us only £64,000,000. Out of this sum it would be difficult, if not impossible, to pay for necessary imports and maintain the external debt service. . . . A bud season would weaken our credit in- London and render a successful conversion loan impossible, even with the support of "lie high finanedf! institutions.”