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AUSTRALIA'S FINANCIAL
POSITION.
VIEWS OF A LONDON MERCHANT.
Mr. W. Leadham Crowe, a merchant of
London, was a passenger by the a.s. Britannia,
and is now at Torrens Island in quarantine.
Failing an interview with one of our reporters
Mr. urowe has courteously communicated his
views to us, at our request, on financial and
other topics. He writes :—
' I shall be pleased to give you my opinions
as to the present position and its effect as re
gards the colonies and England. These are,
I know, shared by a good many who, like
myself, have some personal acquaintance with
the colonies. The general feeling among com
mercial men at home is that, although recovery
from the present severe crisis must be gradual,
confidence will be restored sooner than many
anticipate, and that ultimately this trouble
will be of great permanent benefit to the
colonies.
'The system of banking in Australia [has
been thoroughly unsound, and the Banks too
numerous, involving excessive competition.
Facilities for importing have been too freely
given to speculators and to small firms, and
Banks have undertaken too much business
whiah legitimately belonged to the merchants.
Shareholders must bo prepared in future to
accept smaller dividends, and it i3 hoped that
the Banks will be Ie3s inclined to lock up
money in unrealizible securities, and to dis
count the future.
' I look upon Victoria as being in a totally
different position to South Australia and ths
other colonies, and a far more serious one.
The actual position, and the future position,
of South Australia and the other colonies
appears to me to be a thoroughly sound one.
They ha«re of late suffered no aeavy losses
through drought or other visitations (except
Queensland through floods, and those were
local), but on the other hand they have just had
an excellent season, with every prospect of
another, and there is no diminution in their
productiveness, the key to a colony's pros
perity. The losses of individual speculators,
judging by their liabilities, appear beitvy, but
a good many cf them, like their profits, were
on paper. The value of propartiea throughout;
ihe colonies has been greatly reduced, but no
one supposes that the present oonditions
can last very long. With a return of
confidence properties must rise ac;ain, not to
inflated prioes, bu« to a fair value. Before
long I hope that investors at home will again
turn their attention to Bound colonial in
vestments of a non-speculative type.
' The strong feeling among financial men at
home is that to re-establish their credit the
Australian Colonies must atop borrowing,
reduce their expenditure, and show us that
th6y oaa pay their way without assistance, aB
New Zealand has done. I think many of our
financiers attach too much importance to the
debt per head of your population, without due
consideration of the value of oauh colony's avail
able assets, the manner in which the borrowed
raony has been spent, in many instances
upon remunerative and improving works, and
the rapid progrea^ive increases both of indus
tries and population. The colonists will cer
tainly find ic for some time difficult to raise
money at home, unless upon Treasury bills,
and tile English people will be shy of investing
in new commercial or mining ventures in the
colonies. In mines especially much injury has
been done to the oolonie3 by prcmoters, who
have in the past flooded properties at home for
figures far beyond their real value, and which
could result only in loss to the subscribers and
in discrediting colonial investments.
'There are of course exceptions, but aB a
rule the London stock broker is painfully igno
rant as regards Australia, its position and re
sources. For many years Victoria took the
lead to such an extent that) the condition of
things there was looked upou as the test for
the whole of the colonies, nnd unfortunately,
although the position has changed among the
general public, this is still largely tho case.
Any movement which could bo inaugurated
by which the general public, especially in the
country towns, could be educated as to the
resources of the colonies and the advantages of
life thsre would be of great benefit, and help
to increase emigration. The Queensland Go
vernment have taken a wipe step in sending
horns Mr. H. Black with this object).
' I totally disagree with the pessimists who
see nothing but trouble ahead for Australia.
Like moat younft communities she has gone
too fast, but her undeveloped resources,
her climate, position, and tho self - reliant
energy of her people must ensure her a bril
liant future. I purposely avoid references to
her labour troubles, as I have not been long
enough in the colonies to thoroughly under
stand all the factors bearing upou tho«.» ques
tionB ; but I feel sure that time and the good
sense of both employer and employed will
eventually solve moet of the difficulties both
here and at home. I have myself been con
nected with Australia for nearly forty years,
and have spent on previous occasions some
four years out here. I am attached greatly to
thn country and to its people, and my faith in
its future will not easily be shaken.'
Asked if he had anv connection with the
outer-harbour soheme Mr. Crowe remarked : —
'I was intimatoly connected with the first
ocean-dock sobeme, but as Mr. G. Bailey came
home on behalf of a Syndicate here, and had a
Board of Advice in London, I have abstained
from discussing the matter, exc pt with him,
and merely as an old friend allowed him tho
U6e of my office for his correspondence. At
the same time I still think that an ocean dock
would be of great benefit to this colony, and if
any of the gentlemen interested would like to
see me, or think I can in any way assist the
soheme, I am quite at their disposal.'
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