OVERSEA FUNDS

Wairarapa Times-Age, 22 November 1939, Page 5

OVERSEA FUNDS

WARNING NOTE SOUNDED IN AUSTRALIA

“SOME TIGHTENING OF BELT” IN PROSPECT.

ANTICIPATION OF HEAVY DEMANDS.

By Telegraph—Press Association —Copyright. CANBERRA. November 21.

The Acting-Treasurer, Mr Spender, issued a warning against over-estimat-ing the effects that increasing export prices will have on Australia's oversea funds. He also suggested that the community should prepare for "some tightening of the belt.” He pointed out that the export price level was 10 to 15 per cent better than last year, but about 5 per cent below 1937-38. when Australia had a serious adverse balance of payments. Australia's volume of exports would be large, but it was doubtful, he added how much could be marketed, because of shipping difficulties. Moreover, un. der war conditions, the community could not expect a continuation of private investment from overseas on the scale hitherto enjoyed. “In these circumstances and without considering the present war expenditure abroad,” he said, “there is a distinct possibility of a favourable balance for the year of perhaps £15.000.000, and also a distinct-possibility of its being considerably lower. “Our commitments for the air training scheme, at present unknown, are also likely seriously to affect our London funds, apart from other adverse possibilities.”