AUSTRALIA'S WAR EFFORT
Some of the financial implications of Australia's war ifort were examined by Major-General Sir John H. avidson, in his address to shareholders of the Union Bank f Australia this week. Whereas, prior to the outbreak of ar, the Commonwealth's expenditure on defence for 939-40 was estimated at £33,000,000 (Australian), this gure has already been raised to £73,000,000. He draws conclusion that there must be further borrowing and gher taxation. What of the effect on Australia's external lance of payments? Sir John is cautiously hopeful of provement, although less sure of a substantial addition o Australia's sterling reserves than many have declared emselves in recent months. On the export side the posi- on is fairly calculable, and it is clear that it must benefit terially from the higher prices obtainable from primary oducts. The import side of the question is more obscure. le it is safe to assume that the Commonwealth Bank will ercise its powers of control to prevent any lack of balance, ill imports be held down to a point at which they will not orb the increase in exports? It is probably safe to budget only a moderate accumulation of Australian funds in
ndon.
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