FINANCIAL CONFERENCE

Hokitika Guardian, 20 August 1930, Page 6

FINANCIAL CONFERENCE

. AUSTRALIA’S CREDIT. [United Press Association —By Electric Telegraph.—Copyright.] LONDON, Aug. 18. Australian financial circles here protest strongly against statements that are contained in a Sydney cable appearing in the “Daily telegraph. They are praticularly surprised at the statement made by political writers pointing out that three London banks, in addition to the Bank of England could call up the Commonwealth overdrafts, and make Australia bankrupt. This is exaggerating the position, and it is outside the power of any banks to take such extreme action even if they so desired. MELBOURNE, August 19.

The outcome of the financial conference between the Federal and State Ministers in the presence of Sir Otto Niemeyer(Bank of England agent; is awaited with the greatest interest throughout Australia. The unfortunate absence, through illness, of the Prime .Minister, Mr J. H. Scullin, has rather complicated the position. Hon. Air Fenton (Minister of Customs) is acting for him. The State Premiers and Treasurers to-day are reported to have expressed resentment when they learned that no steps had been taken by the Federal Government to meet £5,000,000 worth of Treasury bills due on August 31st. They fear that Australia will be posted as a defaulter nation. Hon. Mr Fenton attempted to explain the recent financial actions of tlie Federal Ministry. It is understood that the States’ Ministers were not in the least impressed with liis outline of tlie position. Some of the Ministers present indicated plainly their displeasure at the Commonwealtli Government’s inactivity, and there was an insistent demand that Mr Scullin should abandon his trip to London. Sir Otto Niemeyer contented himself with an outspoken analysis of Australia’s .serious financial plight. He urged decisive action to meet the committments falling due in London before the end.’of the'present year. There is now a. disposition at the conference to appoint a committee of responsible Ministers to take charge of the financial situation.

BRITISH COMMENT. (Received this day at 9.40 a.in.) LONDON, August 19. The “Financial Times” published a cable from Australia saying only, two banks in England hold overdrafts for the Australian Governments —namely Westminister and Commonwealth, and neither are likely to prejudice the position of Australia- in the matter of finance. The ‘‘Financial Times” editorially hopes the Commonwealth and States will reach an agreement which will certainly accentuate the recent improvement in Australian credit.