The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, AUGUST 30, 1930. FINANCIAL MORALS.

Hokitika Guardian, 30 August 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, AUGUST 30, 1930. FINANCIAL MORALS.

The action of an organised branch of Labour in Australia in suggesting

repudiation of debts is not suggestive of financial morality among a class which seeks to be the dominant,.party politically It seems to be another case of irresponsible labour asserting itself but it is a bad advertisement for Labour as a party, suggesting a line of policy which if there is to be moral security in business transactions, is going to jeopardise the Ordered, fabric of public husiuefes. Australia has drifted seriously financially. In particular the financial obligations are huge* find tile country, as an individual, has to face the position and endeavour to retrieve the situation in an honourable way, It was left for Sit' Otto Niemover to state the position plainly to the political leaders, and it was satisfactory to know that they were disposed to meet the inevitable fairly and squarely, and set about placing the finances in order, The visiting banker in his survey- pf the position put the matter very frankly. The facts as set forth were sufficiently alarming ancl depressing. The Commonwealth Budget balances theoretically. but most of the States “must face a substantial Budget problem.” Apart from the Budgets, the unfunded Heating debt and internal securities of Commonwealth and States combined maturing hefo-e the end of the year total about £42,000,000 in all for 1930, with £44,000,000 to follow in 1981, £72,000.000 in 1933. and £51.000,000' in 1934. In addition to all this the external debt is heavy, ancl is automatically increasing with the fall in prices ancl the adverse exchange. A sum of £36.000,000 is practically at call in London this year, and in 1932. just when the heaviest 1 internal liabilities mature, the sum of £13,000,000 will fall due at Home. Happily for the Commonwealth it lias no external debt maturing in 1930-31 except the £36,000,000 mentioned above, | and this Sir O. Niemeyer regards as “a great piece of luck,” as it will give Australia a little time to recover her financial equilibrium. For the most nnrt, Sir Otto left it to the Australians to draw up their policy of adjustment, but the New South Wales Trade Union Council suggests repudiation as the shortest means of unloading debts legitimately incurred. Naturally this decision has caused alarm and grave concern both inside and outside Australia, Fortunately the Acting Prime Minister, as also the Prime Minister on the high seas en route to London, have declared oublicly against the proposal for repudiation, but the effect of the resolution from ail import,'ant ■orgn.nisted body of Labour opinion, naturally leaves a very had impression. Labour lia.s been improving its position politically in Australia for some time, and while a sane element is in power all is well. But bv the turn of the political wheel there is no saving when the sane lenders mav be diseased, and it is this uncertainty which checks Labour’s material advance with the general nnldie. There a r e the extreme sections in Labour in all countries. They are to be heard of at Home, and the Labour Government there lias been fortunate to survive in all the circumstances. The good sense of the leader's has saved the political situation really, not the votes of the rank and file, and their noisy sunnorters. Tn New Zealand we have evidence of fho same extreme section being in existence. There was the invasion of the Parliament building the ether dav, and the more recent disturbance at the Prime Minister's departure at Auck •

land. The noisey irresponsible cant do' a great deal to affect the foies of the Labour party, and create >el-i-ngj of •distrust and seven non against the party. Such a wl ale resolution ns has emanated frethe New South Wales organisation Labour is disconcerting ..in the e>ne. If persisted in it would create a rch in the Labour party itself, artho best men Labour has in the p eal arena would be lost,to it. The ole action tends to rob Australia o;m----pathy in the financial troubles, . of the good wishes to achieve sjss. The country cannot too clearly ike it plain that it disassociated itse ith the suggestion of repudiation, a rets about meeting its obligations the right spirit and way. !