AUSTRALIA’S POSITION

Sun (Auckland), Volume III, Issue 905, 24 February 1930, Page 10

AUSTRALIA’S POSITION

FIRM POLICY WILL MEET WITH SUCCESS GOLD ON ITS WAY LONDON, Saturday. The financial position of Australia has been receiving muqji publicity in the newspapers, and the Loan Council’s statement indicating a policy of “root and branch economy,” as one financial writer calls it, has received a “very good Press.” For instance, the. “Daily Telegraph” says the council’s decision may have been inevitable, but credit must be given to those in power for facing the position resolutely. If Australia does not swerve from its declared sinking fund policy, it will not be long before a definite benefit is seen in higher prices cf the existing stocks. The “Statist,” with it usual caution, says that while the statement is decidedly reassuring, much must depend on the duration and the severity of the economic crisis in Australia. The

“Morning Post” says the movements of the Australian exchange at the beginning of this week once again indicate the strained position through which Australia is passing.

Nevertheless, it will be noted that after the first sharp decline Australian loans are now keeping comparatively steady, and this Lindoubtedly is due to the fact that, while the serious character of the economic crisis in Australia is fully recognised, anxiety Las been lessened to some extent by the evidence afforded of adequate recognition of the position by those in authority in Australia. The fact that £7,000.000 in gold is now on its way from Australia is an indication, says the “Post,” that the authorities perceive not merely the necessity for the maintenance of loan obligations, but are doing everything possible to relieve the strain on the exchange.

Sir Robert Gibson, chairman of the Commonwealth Bank, in announcing the bank’s decision to ship £7,000.000 in gold to London, said further gold shipments could be provided if necessary. He said’the board of the bank desired that no misconception should arise out of the statement, and those concerned must not assume that these movements were designed with the object of providing credits for further importations. As a matter of fact the whole movement was being directed with the object of meeting accrued or accruing obligations which must be met. «