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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 unhigh,
 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 prend
 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 commodities.


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 postnterest
 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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