AUSTRALIA’S DEBT.

Hauraki Plains Gazette, Volume XXXVIII, Issue 5171, 29 August 1927, Page 4

AUSTRALIA’S DEBT.

A THOUSAND MILLIONS.

WARNING FROM BANKER.

Vital phases of Australia’s finances, particularly her partiality to borrowing, werei discussed by Mr George Judah Cohen, chairman of the Commercial Banking Co., of Sydney, one of the largest financial houses in the Commonwealth, at the annual meeting recently. He made a strong plea for., economy, and attacked the time payment system.

“We are particularly concerned at the growth of the time payment system, which is pledging the future of many individuals to a dangerous extent,” he said. ■'

The rapid increase of Australia’s public indebtedness from £457,000,000, equal to £92 a head in 1916, to £1,013,000,000, or £167 a head 10 years) later, is a matter to which serious heed should be given.

“The constant; increase in this indebtedness. with consequent Interest obligations-, entails taxation to an amount which threatens to retard seriously the progress of the* country.

“While we have no reason tp doubt the solvency of and prosperity of Australia, and realise that borrowed money is- necessary for its proper development, it is certain that large and•continued- borrowing creates an appearance of affluence which is mis'leading.”

Mr Cohen’s views are respected not so much on account of -his own success ip life, but, because he. is interested in many companies with Commonwealth»wide ramifications, and his warning is taken as a serious indication that Australia’s borrowing must be curtailed to avoid a financial catastrophe.