FEDERAL FINANCE

Hokitika Guardian, 23 August 1930, Page 5

FEDERAL FINANCE

' labour proposals. (Australian Press Association.) SYDNEY, Aug. 22. At a meeting of political and industrial labour bodies at the Trades Hall, it was suggested the Federal Government dissociate itself from the Premiers’ Conference and firstly declare a five years moratorium on interest payable on oversea Government loan's; secondly, repudiate all war debts; thirdly, mobilise the credit of the community fo'r the purpose of providing work or sustenance for unemployed, and a revival of industry. MELBOURNE, Aug. 22. /The reduction of tUe loan programme affects New South Wales approximately by five and a half millions for the current year. The advisory committee of the Premiers and treasurers meets to-day and again next Thursday to be in touch with Sir O. Niemever. In the meantime the Premiers of South Australia, West Australia and Tasmania discusßed the disabilities their States suffer, and confer later when the effect of the present contemplated action becomes evident.

ADMINISTERING THE DOSE.

SYDNEY, Aug. 22

Australia is stirred and deeply concerned by Sir O. Niemeyer’p report, together with the drastic decisions at the Premiers’ Conference, and the Loan Council. The whole subject is on everybody’s lips. The majority of the people are resigning themselves to the inevitable.

The “Evening News” says: The great “boom, borrow and burst” debauch has_ended. The Bill is presented. We have to meet it. Sir O. Niemeyer lias diagnosed the case and. pre scribed medicine. We must ourselves admiiv'eter the dose. The Loan Council has undertaken to raise no further loans overseas until after the existing oversea short-term indebtednes has been dealt with. Attempts will be made to eliminate the duplication of Commonwealth and State services. The Standing Committee appointed at the Melbourne Conference is to watch the operations of the common plan idea or the rehabilitation of Australian finance.

Acting Prime Minister Fenton announces there is no intention at present of holding a special session of the Federal Parliament. '' Ap the result of the slump on the Stock Exchange, some of the Australian Banks have already called up overdrafts that had ’been fliade solely on the security of stocks and shares, which policy hap contributed In no small measure to the continued heavy selling pressure on ’Change in the past few weeks. The Commonwealth’s bonds, however, are holding their , own. 'yfr? DEBTS OF 261 MILLIONS. . TO BE MET IN THREE YEARS. SYDNEY, Aug. 22. Between now and the end. of 1934 the Australian Governments have to cover internal and external Obligations already existing, with a reckoning for the current financing) throughout that period, of about 261 millions sterling, of which thirty-nine millions represents the floating, charges. However, as Sir Otto Niemeyer points out, there are no maturities of any significance in 1931, and this intervals will afford a respite for the harassed Treasurers, but in 1932 loans totalling thirteen millions will mature. LONDON PRESS COMMENTS. AUSTRALIA’S GRIMMEST “TEST.” LONDON, Aug. 22.

Australian affairs figure prominently in the press. The “Daily Telegraph” says: “There is no member of the whole British Commonwealth of Nations which would not feel its pride lowered if Australia fell short pf the highest standard in meeting her obligations. The conference, of State Minsters lias been deeply impressed by Sir 0. Niemeyer’s statement that pledges given should) produce, an immediate ameliorative effect on Australian credit. The real test will come when a drastic diminution of revenue has its inevitable reactions upon wages and the standards of living and its economies 11 the departments.” The “Morning Post’ says: “Hie crisis is nothing more or less than the nemisis on an orgy of extravagance. The position in Australia should provide a grim warning to the British Government of the fate of countries which refuse to cut their coat according to their cloth.” The “News Chronicle” says:' “The execution of the Melbourne Conference decisions will need nerve and courage. “The Times” says: “While fhe Australian cricketers are emerging brilliantly from the ordeal of the British climate, • their compatriots have made a successful start in a, grimmer test on the home ground. Fortunately it is unnecessary to take the situation too tragically. Sir Otto Niemeyer has rightly emphasised the dark side, in order to convince the authorities of the necessity for drastic action. Tt certainly appears that lie lias succeeded in his object.”