ATTITUDE AT HOME

Evening Post, Issue 51, 2 March 1931, Page 9

ATTITUDE AT HOME

LULL IN DISCUSSION

AWAITING DEVELOPMENTS

LONDON, 28th February. There is a relative lull in the discussion of Australia's financial maze. Wellinformed circles confess that this is due to bewilderment in trying to follow the political convictions. They are ' more or less resigned to waiting for Cabinet to disclose its hand in Parliament next week. On tho same ground the fiduciary issue proposal has passed almost without comment, but it is generally agreed that it has sounded the dcath-Icnell of any early alleviation of the exchange position. , It is beyond doubt that the outside exchange market virtually has dried up. Au interesting theory is that this is duo to speculators' fear of being caught by sudden developments. , Those arriving with Australian pounds are finding them worth 12s 6d, and then only tourist agencies are buying them. The decision of. South Africa to ban Australian silver currency is probably duo to tourists seeking that loophole to avoid tho exchange. Many Australians are arriving in London bringing accumulations of Briish silver coinage. One woman this week landed1 with £57 in silver. 4 'WILIER THAK LAHO." "Mr. Theodore is a much wilier person 'than Mr. Lang," says the 'Manchester Guardian," in a leader. "While denouncing Mr. Lang's debt repudiation he has produced fine-sounding schemes, the adoption of which would ruin creditors' security. "Tf the currency issue plan is carried out wo expect to see the exchange rate on Australian pounds nearor two hundred than one hundred in a few months, for the Federal Government will be in the sharpest conflict with the Australian and British banks and three States. "Somebodjr must show tKe Australians that tho march to prosperity must be a disciplined one—that they have a right to reverence tho standard of living; but there aro timos when such divinities have to be propitiated from afar." "The Times" in a leader refers to the folly, and dishonesty of Mr. Lang's proposals, but says that, happily, the credit of ; Now South Wales and all other Governments of Australia arc protected by tho joint credit of the whole Commonwealth. "Well-informed circles In the city regard tho Commonwealth currency pro]ios;il its n politic!)! 'gesture," sa;|s the

"Financial Times." "They are convinced that such a policy would not be countenanced cither by the banks or by the Senate." The newspaper adds: "Authoritiesin closo coTinection with trading channels to Australia continue to report an improving business in wool, wheat, and dairy produce, the prices of which show a distinct tendency to rise." LAST THROW IK GAMBLE. An editorial is rather inclined to regard Mr. Theodore's proposals as the last throw in a political gamble. The stop cannot be compared with the facilities given to some central banks to increase the Jiote issue' temporarily beyond the sums justified by the gold reserves. Little encouragement is given from official quarters to Lord Eothermere's advocacy of the cancellation of Australia's war debts. Indeed, there is considerable disposition to regard it a disservice to Australia, whose misfortune is being made an occasion for newspaper exploitation. Downing Street circles emphasise that oven' the, Commonwealth never suggested cancellation. Any attempt in that direction involves similar treatment for the other Dominions, and would,, perhaps, reopen the whole fabric of reparation agreements. STOCKS STILL FIBM. According to an earlier message, Australian ■ stocks maintain their firmness, and several have appreciated , one' to I three points.-