The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, JULY 25, 1930. A FISCAL ADJUSTMENT.

Hokitika Guardian, 25 July 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, JULY 25, 1930. A FISCAL ADJUSTMENT.

A cable message earlier'in the week intimated that lollowing the arrival of Sir Otta Niemeyer in Australia, representing the itank of England, a conference of bankers and political leaders was held in Sydney relative to financial matters. The full story of the negotiations have not been made public, but it has been indicated that arrangements have been made to give as much support as possible for available Australian credit abroad, This will assist in meeting the exchange problem which was so adverse to the Commonwealth, " The prospect of Sir Otto Niemeyer visiting Australia on his special mission has been resented in some quarters by the metropolitan' press, but the move is quite a good one, and the ultimate effect on the financial issues might be very material. The Prime Minister (Mr Scuflin;

in his interviews with the financial magnate will be able to show that he is exhausting all possible means to surmount the great difficulties he has become heir to. Jn the heart to heart conversations the visitor may be able to disclose ways and methods of action which should help in the emergency. And if he can point to a course which Australia would adopt, the hacking of the Bank of England would surely be helpful to the Government when it may venture on the Joan market. Australia is penalising itself very highly by the extra taxation now enforced, but in the absence of Joan moneys it is the only course to follow short of disaster, Loans falling due have tp hp provided for, and as much internal borrowing as possible, on top of the extra taction is being indulged in. But tlio aggregate debts of the Commonwealth and States are so great that the present income is not sufficient to meet the very urgent needs. There are some

tilings which Mr Scullin has declared he will not do. He is not prepared lor instance to reduce pensions, and he jui-s avoided in view of political pledges abrogating the principle of the Arh'tration Act. Tfc is just a question liovv Sir O'tto Niomoyer will view the working effect of the Arbitration Act, and to what extent lie might suggest certain modifications. The reduction of the lie sic wage in various occupations might liayo ap uplifting effect on Australian events, and this in relation to the high tariff, presents quite another phase of the situation. Sir Otto may consider the high tariff as something more than a means fpv revenue. Its prohibiting aspect may enter into the considerations. Actually, politics and finance become very inti*

matelv bound up in the 'issue, and the ideas of the London banker and the Australian Labour leader may clash. Lt is when tue negotiations pass to fundamentals that the gravity of the conference will be most serious. But whatever the outcome, it appears Mr Sculiin, according to his lights, and 111 keeping with his political tenets, is doing what he considers right, and deserves credit accordingly. He has assumed office at the most critical time in the history of the Commonwealth, and that he lias been able to avo'd disaster in the crisis is to his credit. Many who do not support his policy and methods are giving him credit for his courage in the emergency, and the patience with which he awaits the outcome of li is actions. He will be the wiser for his talk with Sir Otto Neimeyer, who will present ideas from an angle different to that viewed by the local politician. To that extent it will lie educational, and will afford food for thought. Let us -hope that from the outcome will emerge a period of greater stability for the finances of Australia.