UNFAIR TO AUSTRALIA

Sun (Auckland), Volume III, Issue 884, 30 January 1930, Page 11

UNFAIR TO AUSTRALIA

NEVER FAILED IN FINANCE OBLIGATIONS I LONDON CRITICS RELENT L iiitcd P. A.—By Telegraph—Copyright Reed. 9.5 a.m. LONDON, Wed. The London “Times,” in an editorial, admits it is unfair to debit against Australian credit the influence of the present monetary stringency, in which practically all other countries have participated. It has been demonstrated, the paper says, that Australia is easily able to meet her obligations and fully intends to continue to do so. The Commonwealth fully merits the confidence of capital and is entitled to freedom from factious criticism founded upon little knowledge. In the course of his speech at the Australia Day banquet the Federal Minister of Trade and Customs, Mr. J. E. Fenton, said Australia, in common with other countries, was feeling the effects of the stringent financial conditions which at present prevailed. STABLE AT GOOD PRICES In Australia, however, the Common- | wealth stocks were stable at good \ prices. The Commonwealth had paid i over a long series of years interest to the amount of £502,000,000, and had never yet failed in her obligations. Australia had contributed about £630,000,000 to the wealth of the Empire in gold. Australia was on the eve of a great gold mining revival. One company was spending £3,000,000 in introducing a new process and methods for making low grade ore payable. Anj other big concern, whose representaI five had just returned from Australia, i intended to spend £600,000 in developi ing considerable mineral areas in ! New South Wales. I A message from New York says the j slow but steady fall in Commonwealth I 5 per cents, and Ab. per cents, on the i local market has excited considerable i interest. The 5 per cents, reached | 9 Qh and the 4J per cents. S 8 at the I highest quotations of the year, but i have receded with a particular loss’ of : from 3 to 5 points within a week. STATE MIGHT ACT It is learned that official cognisance has been taken of the situation and some action is contemplated, although no decision has as yet been reached. Inquiries in various quarters indicate that there is some possibility that the Australian Government may make purchases in New York for sinking fund purposes and for the stabilisation of the market. Although circles close to Australian I affairs here admit that tbe recent unfavourable dispatches from the Com* | mouwealth concerning economic eon* | ditions undoubtedly have had an effect I on Australian stocks, tlie peculiarly uuj stable position on the local bond mar* ! ket is principally to blame. All lists : are irregular and sluggish, with a ten* I dency to show losses fn foreign issues.