Otto Niemeyer
Encyclopedia
Sir Otto Ernst Niemeyer, GBE
, KCB
(1883-1971) was financial controller at the Treasury
and a director at the Bank of England
. He was also treasurer of the National Association of Mental Health (UK) post World War II. His niece, Mary Applebey, was General Secretary of the association.
In July 1930, during Australia's Great Depression
, he travelled to Melbourne
to advise James Scullin
's government. There, he devised the 'Niemeyer statement', a monthly statement of commonwealth
government financial transactions. He was Chairman of the Bank for International Settlements
between 1937 and 1940.
's
"Men, Money, Markets" economic strategy, and partly because of the large war debt established during World War I
. Following the Wall Street Crash, the United States
called in many of its World War I
loans, including many from the UK, which, in turn called in its own loans from Australia. Australia had accumulated such massive debt that it was unable to repay even the interest on its loans. In order to avert total bankruptcy, Australia asked Britain for a deferment of payment on its war debts. To determine whether or not this was a viable financial option, the British banks sent Niemeyer to give an assessment of Australia and its financial situation.
However Niemeyer's report was less than positive. He was critical of Australia's overconfidence and essentially said that Australia was "living beyond its means", that it had become prosperous through "mistakes" and that in order to become economically viable Australians would have to "accept a lower standard of living". The report continued to suggest that Australia should continue to exist only as a means to supply Britain with goods, and that its protectionist attitude was deviating Australia from its true purpose.
Order of the British Empire
The Most Excellent Order of the British Empire is an order of chivalry established on 4 June 1917 by George V of the United Kingdom. The Order comprises five classes in civil and military divisions...
, KCB
Order of the Bath
The Most Honourable Order of the Bath is a British order of chivalry founded by George I on 18 May 1725. The name derives from the elaborate mediæval ceremony for creating a knight, which involved bathing as one of its elements. The knights so created were known as Knights of the Bath...
(1883-1971) was financial controller at the Treasury
HM Treasury
HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
and a director at the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
. He was also treasurer of the National Association of Mental Health (UK) post World War II. His niece, Mary Applebey, was General Secretary of the association.
In July 1930, during Australia's Great Depression
Great Depression in Australia
Australia suffered badly during the period of the Great Depression of the 1930s. The Depression began with the Wall Street Crash of October, 1929 and rapidly spread worldwide. As in other nations, Australia suffered years of high unemployment, poverty, low profits, deflation, plunging incomes, and...
, he travelled to Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
to advise James Scullin
James Scullin
James Henry Scullin , Australian Labor politician and the ninth Prime Minister of Australia. Two days after he was sworn in as Prime Minister, the Wall Street Crash of 1929 occurred, marking the beginning of the Great Depression and subsequent Great Depression in Australia.-Early life:Scullin was...
's government. There, he devised the 'Niemeyer statement', a monthly statement of commonwealth
Commonwealth of Nations
The Commonwealth of Nations, normally referred to as the Commonwealth and formerly known as the British Commonwealth, is an intergovernmental organisation of fifty-four independent member states...
government financial transactions. He was Chairman of the Bank for International Settlements
Bank for International Settlements
The Bank for International Settlements is an intergovernmental organization of central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks." It is not accountable to any national government...
between 1937 and 1940.
Journey to Australia
Australia had accrued substantial debt, mainly from Britain's independent banking sector, by the late 1920s - party as a result of Prime Minister BruceStanley Bruce
Stanley Melbourne Bruce, 1st Viscount Bruce of Melbourne, CH, MC, FRS, PC , was an Australian politician and diplomat, and the eighth Prime Minister of Australia. He was the second Australian granted an hereditary peerage of the United Kingdom, but the first whose peerage was formally created...
's
"Men, Money, Markets" economic strategy, and partly because of the large war debt established during World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
. Following the Wall Street Crash, the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
called in many of its World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
loans, including many from the UK, which, in turn called in its own loans from Australia. Australia had accumulated such massive debt that it was unable to repay even the interest on its loans. In order to avert total bankruptcy, Australia asked Britain for a deferment of payment on its war debts. To determine whether or not this was a viable financial option, the British banks sent Niemeyer to give an assessment of Australia and its financial situation.
However Niemeyer's report was less than positive. He was critical of Australia's overconfidence and essentially said that Australia was "living beyond its means", that it had become prosperous through "mistakes" and that in order to become economically viable Australians would have to "accept a lower standard of living". The report continued to suggest that Australia should continue to exist only as a means to supply Britain with goods, and that its protectionist attitude was deviating Australia from its true purpose.