Die deutsche Hausindustrie

Report of the British Economic Mission to Australia

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Monograph

Identifikator:: 1003351123

URN:: urn:nbn:de:zbw-retromon-16006

Document type:: Monograph

Author:: Koch, Heinrich

Title:: Die deutsche Hausindustrie

Edition:: Zweite, bedeutend erweiterte Auflage

Place of publication:: M. Gladbach

Publisher:: Volksvereins-Verlag GmbH.

Year of publication:: 1913

Scope:: 1 Online-Ressource (294 Seiten)

Digitisation:: 2017

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Sechstes Kapitel. Staatshilfe

Collection:: Economics Books

of being self-supporting at a reasonably early stage. We have no doubt that the resources of Australia are amply sufficient to support a prudent borrowing policy of this character, the adoption of which would in itself do much to strengthen Australia’s credit. 26. Generally, we are so much impressed with the financial and sconomic risks surrounding Government borrowing for purposes of development that we are moved to suggest that Governments should restrict the sphere of their activities in this direction and in shat of business undertakings and should leave the field more widely open than in the past to private enterprise, possibly adopt- ng the method indicated below in paragraph 28. 27. The sphere of Government activity in Australia must, in any case, be large, and things have gone too far for us to discuss to-day such matters as the construction of railways or works for he conservation and distribution of water by private enterprise. But a very wide field remains open which Australian Governments have, to a great extent, entered, and here we think that these Governments would be wise to go no further. Within this field we think that private enterprise, with no public purse to fall back upon in the event of failure, exposed to no political pressure to embark apon unprofitable courses, and stimulated by the hope to gain to the maximum of economy and efficiency, would produce results more beneficial to Australia as a whole than the present system is calculated to yield. Progress might indeed be slower than in the case of successful Government action, but it would be more sure, and the risks of loss and failure which entail not progress but re- gression would be greatly diminished. - 98. A middle course between purely governmental and purely private enterprise might be found in appropriate cases if the capital for development were found by companies formed for the purpose, to the extent of not less than one-half in the shape of ordinary shares issued for cash, and the remainder in the shape of vreference shares or debentures, the interest on which might be yuaranteed by the Government for a limited number of years. The risks of loss would then fall primarily on the holders of the ordinary shares, while all profits realized after payment of preference or lebenture interest would accrue to them. 99. We realize that a curtailment of loan expenditure by the Australian Governments must involve the inevitable concomitants of deflation. Deflation nevertheless remains the course of wisdom if it be true, as we think it is, that free expenditure on schemes very doubtfully remunerative has contributed to produce an inflated sosition. The temporary apparent prosperity which such a posi- ion creates cannot in any case be lasting. If it is sought to pro- ‘ong it, it brings with it its own inevitable nemesis. Conclusion 30. Our final conclusion in regard to Australia’s finance is that 230 linn her creditors have no cause whatever for present anxiety, because ATO. she is still borrowing well within her actual and potential resources, Restriction of objects of Government borrowing, Private anterprise. Possibility of sombined Government and private snterprise. Conse- juences of surtailed oan sxpenditure.

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