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CONTINUOUS BORROWING 239 
ctivity of the overseas debt. The increase in the per: 
te of the disposable income necessary to pay the annual 
sas interest charge is the most serious aspect of the situa- 
While the analysis does not indicate that the proportion 
+ disposable income which is used to hire capital is un- 
high, since production itself rose during the period by 32 
:nt., it does indicate the real crux of the external debt 
ion. 
jecond point established by Dyason has reference to the 
sve proportion of external debt to production in the pre- 
nd post-war periods. It must again be emphasized that 
Tare LVI 
External Interest and Productivity per Head 
] 
Annual average 
production 
of export 
sommodities 
per head 
of pre-war 
nrice-level. 
External 
interest 
charge 
per head 
at pre-war 
price-level. 
Average annual 
production of 
export com- 
modities. 
Mean 
population. 
{ Millions.) 
Interest 
on the 
eacternal 
debt. 
a. 
to 
to 
7 
- 
146 | 4657 
5.090 
30-3 
7.119 
1:6 
82:3 
18-455 | 
2.77 
Increase per cent. 
6-6 
68-0 
alue of total production does not seem 80 important for this 
ose as the value of the production of export commodities. 
ould appear to be necessary to compare pre-war and post- 
nterest and disposable income at a common price-level. The 
ire then assumes a somewhat different complexion, for it 
ident that, while the annual average production per head 
tport commodities increased by. 6-6 per cent., the external 
est charge had increased by 68 per cent., or more than ten 
3 as fast. 
-y a further comparison of annual indebtedness due to 
owing with the estimated annual savings, Dyason arrives at 
final decision that Australia is living well within her income. 
iittedly this may be true, although the estimate of national 
7; ngs made by Sutcliffe upon which he bases his judgement 
+ pins the most conjectural and the least satisfactory aspect 
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