TO CAPITAL REQUIREMENTS 247
the ultimate outcome of the reorganization of British industry
should be increased productivity and, consequently, increased
capacity to lend, the immediate effect will inevitably be to
curtail, if not to stop entirely, British foreign loan issues. Com-
petition for markets with countries whose industrial organiza-
tion and technical improvement was not impeded by the war
will intensify and prolong the British effort to regain her pre-
war status; but the drain on available capital supplies will be
correspondingly increased.
On the other hand, however. it is to be thought that invisible
exports, both of capital and services, from Great Britain have
been grossly under-estimated. The ‘flight of capital’ from taxa-
tion, unrecorded receipts from overseas, and international
‘windfalls’ of one sort and another undoubtedly modify the
situation as presented above; but not sufficiently to invalidate
the truth of the assertion that Britain’s power to export capital
has dwindled in a very marked manner; and little but dis-
advantage is to be gained bv postponing the determination to
reorganize Australian internal resources in accordance with the
changed situation abroad.
Another possibility in the situation operates in the direction
of lightening the incidence of the overseas debt by increasing
the number of burden-bearers. Hand in hand with a more
effective use of the national resources goes the necessity for an
increase of both producers and consumers in Australia. A rapid
increase of population by means of immigration would, through
the increase of both producers and consumers, relieve the
pressure in several ways. First, as producers effectively engaged
in development, the new-comers should enlarge the volume of
disposable income. At the same time they would take up some
of the weight of taxation. But it is to be thought that the greater
effect would be felt by reason of the increase of consumers. The
present capital equipment, especially in the form of railways,
roads, irrigation, postal and other public services, is adequate
in the settled districts for a much greater population and a vastly
enlarged volume of transport. Rapid growth of population
would, by a greater use of these facilities, ensure a larger return
apon much of the capital sunk in these enterprises; and would
tend to diminish the steady drain upon production represented
by persistent deficits. Further, the increase in demand repre-