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

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Chapter

Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

CONTINUOUS BORROWING 239 productivity of the overseas debt. The increase in the per- centage of the disposable income necessary to pay the annual overseas interest charge is the most serious aspect of the situa- tion. While the analysis does not indicate that the proportion of the disposable income which is used to hire capital is un- duly high, since production itself rose during the period by 32 per cent., it does indicate the real crux of the external debt situation. A second point established by Dyason has reference to the relative proportion of external debt to production in the pre- war and post-war periods. It must again be emphasized that Tare LVI Bxternal Interest and Productivity per Head §-year veriod. 1910 to 1914. | 1923 to 1997 dverage annual production of export com- modities. Mean vopulation. Millions} 14R 4-657 987 | 5-929 Increase per cent. Annual average production of export sommodities per head at pre-war mprice-level. 30-3 32-3 6-6 Interest on the ternal debt. 2.119 16-456 Baternal interest charge per head at pre-war nrree.devel. 1-6 2.7 68-0": the value of total production does not seem so important for this purpose as the value of the production of export commodities. It would appear to be necessary to compare pre-war and post- war interest and disposable income at a common price-level. The picture then assumes a somewhat different complexion, for it is evident that, while the annual average production per head of export commodities increased by. 6-6 per cent., the external interest charge had increased by 68 per cent., or more than ten times as fast. By a further comparison of annual indebtedness due to borrowing with the estimated annual savings, Dyason arrives at the final decision that Australia is living well within her income. Admittedly this may be true, although the estimate of national savings made by Sutcliffe upon which he bases his judgement remains the most conjectural and the least satisfactory aspect

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