Borrowing and business in Australia

Bibliographic data

Monograph

Identifikator:: 183051623X

URN:: urn:nbn:de:zbw-retromon-222122

Document type:: Monograph

Author:: Wood, Gordon L. http://d-nb.info/gnd/1239193688

Title:: Borrowing and business in Australia

Place of publication:: London

Publisher:: Oxford university press, H. Milford

Year of publication:: 1930

Scope:: xv, 267 Seiten; graph. Darst.

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part V. Australia during and after the great war

Collection:: Economics Books

THE BALANCE OF INDEBTEDNESS, 1918-28 211 has been deemed of sufficient importance to call for special con- sideration. As in the pre-war period the receipts from Australian capital invested abroad were not of a high order, although it was evident that the amount is steadily on the increase. On the basis of the excess of the receipts from overseas over the expenditure over- seas by life assurance and other companies, rates of dividends in tin, rubber, and other concerns, and other related data, the computation shown in the interest column under ‘credits’ in the final table was made. It is, admittedly, not much more than conjecture. The completed balance of international indebtedness is of more than ordinary interest. Notwithstanding the disjointed nature of the period, and despite the adjustments made necessary by the return to gold, the situation revealed by the table is precisely what orthodox theory would lead us to expect. The mechanism of adjustment varies in no important respect from that indicated by the pre-war balance of indebtedness. Setting the two main facts of this last phase of the investigation side by side, the following comparison is obtained for the whole period 1920-28 - Tora oF OVERSEAS LOANS. Government Municipal . Business . . Private ‘ . . “ Capital imported . . 266 . £m. 210 16 28 DIFFERENCE BETWEEN INTERNATIONAL DEBTS AND CREDITS, Total debits Total credits £m. 1635 1360 Excess of debits , . . 278 The discrepancy of approximately £9 millions can be partly reconciled. The calculation is taken to 30 June 1928; and the first half of this year was a period of relatively heavy loan issues. At the end of the half-year London banks held about £3-5 millions of unexpended loan balances in connexion with loans floated by the Commonwealth for the States, and this amount, of course, would not show in the total of imports. The surprising feature of the whole balance of transactions is once again the rapidity and accuracy with which loans become translated into imports of all kinds, both services and commodities.

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