MR HUGHES SAILS

Hokitika Guardian, 29 April 1921, Page 3

MR HUGHES SAILS

| STATEMENT BEFORE LEAVING. 1 AUSTRALIAN AND N.Z. CABLE ASSOCIATION. (Received This Day at 9.45 a.m ) MELBOURNE, April 29. Prior to his departure last night, Mr Hughes (Federal Premier) made a state meat in the House of Representatives justifying the Government’s financial proposals which ho said were framed on economical lines. The present position required the stressing of the importance of naval defence. He declared until Australia obtained an assurance which he hoped to obtain from the Imperial Conference, that peace in the Pacific is assured, he would not cut down the naval expenditure one thousandth part of a penny. Dealing with the wheat question he stated that 55) million bushels had been sold to overseas buyers for a total f.o.b value of £22,715,000 equal To slightly over 9s 3d per”'bushel. Other sales had been arranged totalling about eight million bushels. Ho considered the world’s position in regard to wheat now to be sufficiently normal to return to pre war methods of marketing. Therefore Government would take no steps to. form a pool for 1921-22 season’s wheat. Regarding wool Mr Hughes said the position was very serious. There was sufficient accumulated surplus to supply the world’s demand on pre-war basis for 2) years, though the present demand was lesser than before the war. That mountain of wool threatened to fill and crush the industry utterly. In addition to this there was the present season’s clip. Mr Hughes continued that at tne suggestion of Sir John Higgins, the Chairman of the Australian section of ißawra, who had informed bun that it was the attitude of some Australian banks, with their head offices in London. which hud brought about the collapse of Bawra reserve. He called a conference oT wool interests an associated banks to discuss the questions of relieving the position. Ihe conference requested Government not to permit the export of wool except on a guaiiiutee that the shipper would not sell under the Bawra reserve. He asked the conference to make the reserve a fixed one, and that it must not exceed the bare cost of production. Subsequently he received a written communication on behalf of Victorian hanks, stating they had discussed the conference proposals, but owing to failure at the time to consult the batiks in otjjor States the Victorian bank i egret ted they were unable to join ill the proposal. Me Hughes, again stressing the grave potential danger of the wool situation, said he was sure Bawra "as not going to hold the market up. though it might prevent the collapse for sometime. He then suggested- that the price of wool he fixed at ninepence or even a penny lower, and 'hereby prevent the bottom falling out of the market. When they had achieved that, they could take other action to meet the situation. A proposed time limit of two months had been fixed for the operation of this proposal, in order 'to give the Ministry, hanks and Bawra time to see what the position will be, and himself the opportunity to go to England to consult the Imperial Government.

The House at Mr Hughes’ suggestion will consider the proposal to-< ay.