FEDERAL FINANCE

Hokitika Guardian, 8 November 1930, Page 5

FEDERAL FINANCE

MR LYONS' DETERMINED

WILL RESIGN IF REPUDIATED BY CAUCUS,

(Australian Press Association.)

•MELBOURNE, November 7

Interviewed on bis way to his home in Tasmania., the Acting Federal Treasurer, Hon. Air Lyons, said: “I have not resigned. If, however, our Party insists that its rediculous proposals shall be submitted to Parliament as part of the /Government’s financial policy, then there will be no place for me in the Cabinet.” Mr Lyons expetes to receive from Mr vScullin, the Prime .Minister, a cablegram from London concerning the Cabinet crisis when he has reached his home.

OPPOSITION SUGGESTION

CANBERRA, November 7

M hen the Federal House of Representatives met to-day, Mr Latham (Leader of the Opposition) asked the Acting-Prime Minister, Air Fenton, whether the Labour Ministry had decided that Australia, should default in meeting an eighteen million loan that is due cn December loth., by introducing Legislation for the postponing of the 'date of the maturity of the loan.

Mr Fenton, in replying, said that the Government’s policy would he. mnde known in due time. The eight million loan, mentioned by Mr Latham represents the Commonwealth Government’s share of the twenty-seven million loan maturing shortlv.

Replying to Mr Gullett, Mr Fenton said that lie had been in constant communication with the Prime Minister, Mr Scullin, over the wireless telephone, and what had passed between them would he announced by way of policy.

OPPOSITION TACTTCS

CANBERRA, November 7

Air Latham. Leader of the Opposition, in the F'ederal House, has given notice that lie will move for the suspension of Air E. G. Theodore from the House of Representatives until a further order of the House. It is understood that this means until after the civil actions over the Mungann mines have concluded.

LONDON PRESS CONCERNED

LONDON, November 6

The “Morning Posts’s” City edition says:—“The cable from Australia regarding Hon. Mr Lyons, tho Acting Federal Tensurer, is hound to have a had effect on Australian credit. The paper adds: “One of the defects of extreme Labour politicians is that they have an imperfect appreciation of what is involved in national credit. The “News 'Ohuonicle’s” iOity edition says:—“The Caucus decision will be unwelcome in London, where hopes were held that the way would he cleared, by a proper handling or the internal loans for the repayment of the loan maturing in London in 1932.

THE MONEY MARKET. AN EASIER TENDENCY. SYDNEY, November 7. .An easier trend in the Share market, noted yesterday, under the influence of Air Lyon’s Budget proposals, has been accentuated to-day. Loan quotations in particular, reacted sharply to the desire by a section of the Labour caucus that the December loan conversion should be delayed for one year. The bond market, accordingly, finished weak. The issued that is maturing next week sold at 101 sterling, representing a fall, of fifteen shillings, despite the fact that £2 Is interest lias accrued. The 51 per cent. 1933 ■issue dropped ten siblings to £95 15s. Altogether seven issues were down, the losses ranging from 10s to per cent. Sympathetic declines were also noticeable in Bank shares and leading industrial shares. British Tobacco Oov., shares fell 2s in consequence- of the heavy Budget impost.

The new Federal tax on property, embracing the income from rents, investments, and dividents has severely hit some of the leading industrial companies, a.s the super tax of per cent, will make subtsantial inroads in their profits.

MB LYONS INTENTIONS

this dav at 8.30 a.m.) CANBERRA. Nov. 8.

It is reported here that Mr Lyons will nob resign or relinquish the Treasury until Mr Sctillin returns. He presides at a meeting of the Loan Council on Tuorsday. It is understood lie will ask the Loan Council to raise a twenty-seven millions conversion loan in the onen market. 'COMMONWEALTH BANK.

The Commonwealth Bank directors have just concluded a long sitting at Melbourne discussing measures for the maintenance of Australia's financial equilibrium although no official statement. ha,s been issued there is reason to believe, says the press, that there will he no departure from the Bunk’s policy of meeting the situation along sound hanking lines, and the Hoard is unlikely to agree to any steps for inflation by note issues.

MR SCULLIN.

(Received this day at 9.30 a.m.) LONDON, Nov. 7

Mr Scullin, asked if Government would agree to suspend the payment of the laon maturing in December, replied “decidedly not.’ ’

FALL IN VALUES

LONDON, Nov. 7

The news from Canberra lias depressed Australian Government Stock quotatons on the London market, which are largely nominal and lower all round, compared with yesterday. Commonwealth fives declined 40s, sixes 17,s 6d, Victorian three and n-lmlf 255, New South Wales declined ranged 15s, 50s, Queensland 20-s, 50s.

RECKLESS STATEMENTS

SYDNEY, Nov. 8.

Mr Stevens, referring to Mr Lang’s statement, said it was absurd as the Treasury’s cash account is in credit. Air Lang’s statement as Premier is even more reckless and irresponsible than his statements when lie was leader of the Opposition.

The cash credit balance with our ■Sydney Rankers on November 11th this year was approximately eleven hundred thousand sterling as compared with a balance of little over half a million when we assumed officr t-liree years ago. ' The bitost figures, relating to Australian overseas trade, show the gap (between exports and imports had boon closed for the first three months of the present financial year. The total exports aifiount to £3,070,314 over a total imports and export of gold combined to produce favourable turn in aggregate figures. Imports show a contraction oi lortyfivo per cent.