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BANK OF NEW SOUTH WALES
There is interesting material for all who are interested in the war-time financial problems of Australia and New Zealand in Mr. R. W. Gillespie's review at the annual meet- ing of the Bank of New South Wales. One important fact he made abundantly clear, namely, that the war-time economic problem of Australia is similar to that of Great Britain. Somehow or other the Commonwealth must divert resources from peace to war purposes and this must involve a reduction in the standard of living. Moreover, there would be problems of adjustment in the industrial field and the need for a good deal of co-ordination and long-distance planning. Fortunately, as Mr. Gillespie emphasised, Australia enters the war with a strongly-organised economy, and her national income will be well maintained by Great- Britain's purchases, at satisfactory prices, of her primary commodities, like wool, foodstuffs and base metals. Whether, as some City opti- mists are predicting, Australia's sterling balances will grow sufficiently to allow any substantial repayments of sterling debt it is hard to say. Obviously, she and New Zealand, the Commonwealth will be importing in considerable quantities to sustain her war-time industrial programme. Perhaps it will be wisest to content ourselves with the thought that both Australia and New Zealand will be able to combine a healthy industrial expansion in the Empire's cause with a gradual strengthening of their finances.
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