FINANCIAL DRIFT

Shannon News, 4 January 1927, Page 3

FINANCIAL DRIFT

POSITION IN AUSTRALIA. "OVERWHELMING DEBTS." BANKER'S OUTSPOKEN WARNING SYDNEY, Dec. 1. Mr. Thomas Buckland, president ot the Bank of New South Wales, in addressing shareholders at the annual meeting yesterday uttered, a worning against the policy of drift in financial matters existing in Australia. "I would not be doing my duty to my country, or my bank," said Mr. j Buckland, "if "l did not point out the serious, the critically dangerous drift in money matters which has set In throughout the length and breadth of the continent. In the absence of something better to supersede It, money remains the medium of the world's civilisation ,and if you dissipate it individually or collectively, you must necessarily go under, and it is because I do not wish this country and the people in it to go under that I am speaking as I am. "The Government of the United States of America recognises this allimportant fact, and whether individuals personally admire the American people or not, we must one and all admit their wonderful administrative capacity, their enormous prestige chroughout the world to-day,- and the wonderful prosperity .contentment, and pride of country of its people as a whole. The reason Ls that their Governments realise the power of money, and instead of spending every penny they can squeeze out of the ratepayers they encourage enterprise and give conlidence by decreasing taxation. They have, I am given to understand, remitted during the last two years nearly two hundred million pounds sterling in taxation. "On the other hand, we. in Australia are building up overwhelming debts, and I would ask which of our Governments is exhibiting any serious disposition to reduce its liabilities? Which of our Governments is not increasing its liabilities? Common knowledge and statistics will answer these questions,' and so long as the Governments and other public bodies continue to dissipate the ratepayers' money and go on pur-. chasing popularity by borrowing and spending that money upon unproductive works, so long are wc in the greatest jeopardy, so long are we on Uv.) brinks of chaotic trouble. "A Fictitious Prosperity.' "And yet these conditions are allowed; in fact, encouraged, to go on because tliey create a fictitious prosperity which, however pleasant it. may be lor the moment, .canUH carry on indefinitely for' many reasons, two of which are, firstly, the vaUe will soon be taxed out of all commodities, and, therefore, that sourco of revenue will cease, and, secondly, it must be obvious to everybody, in fact, there have been some .very unpleasant indications quite recently thai the well of our borrowing source is not bottomless, and 1 should like to know what will happen when that gives out. "Extravagant expenditure, so exemplified by our Government and public bodies, also seems to have permeated a certain section of our people, who should now nearly all be prosperous ,and saving money, for although rash statements and figures may be brought forward to the contrary, it is pretty genet-ally known and cancelled that the wage-earner of to-day is better off than he has ever been before in that his average earnings have increased in recent yeavs more rapidly than the cost of living. At present commodity prices are n<-t much higher than they wer e four or five years ago, whereas wages are considerably higher than they were then. High wages ar e good for all if value is given for thorn do not exceed the cost of production. Private Extravagance. "I think a good deal of thoughtless spending of money is brought about by the time-payment system, which has made such headway in our midst of recent years. I realise that protracted payments are beneficial in the matter of useful progressive enterprise, such as the purchase of land for productive purposes, farming implements and motor-lorries for business purposes, but the extent to which the practice of purchase by time-payment has increased of such luxuries as motor-cars for private use, furniture and musical instruments for the grati•• cation of immediate pleasure is alarming, and should be discouraged. People may be become involved in these insinuating obligations almost without noticing it, and their future earnings pledged in a most disheartening manner."