A POLICY SPEECH

Hokitika Guardian, 16 January 1931, Page 5

A POLICY SPEECH

MR J. H. SCULLIN

OPENS BYE-ELECTION.

CAMPAIGN.

{Australian Press Association)

(Received tins day at 9- a.m.) SYDNEY, Jamr.uy 18

Mr J. H. Sculiin, Federal Prime -Minister, in the course of a speec.\ .said: — Tlie remedy Is neither deflation nor inflation. The remedy, in my Judgment, is the restoring ol stabilisation.

With these magic words, the Prime Minister, Mr J. M. Sculiin replied to a section of Labourites, chiefly in New South Wales, clamouring for inflation of currency.

Mr ScullTn delivered an hour’s speech to-night at Aslifield Town Hall, opening -“•he Labour campaign for Parkes byeelection. Thousands were unable to gain admission. Mr Sculiin, who received a tremendous ovation, emphasised the very serious plight of the Commonwealth. He explained that the financial, economic position had gone 'from had to worse and it would not be possible to balance the budget in the current financial

year. He fhell proceeded tb exllituhe the suggestions for meeting the position. “Some people say iVo- should bring down prices and wages. Others say we should go in for inflation. My nnMver to that is that the remedy is neither deflation nor inflation. Hie remedy in my judgment is restoration of stabilisation.” (Prolonged cheers). While I was abroad I discussed the depression with some of the biggest brains in many countries. 1 found that the more they knew about the subject,

the less they knew about 'the remedy

He added that there was no easy

road. If there was one, they could be * sure the older nations would not be where they were to-day." 1 do not want to create in the minds of the workers that there is an easy road by the printing of a mass of paper. There is a very real danger in printing notes, because it leads to wild inflation of currency, wages are depressed, and rents rise. There are eften expansions or credit, and sometimes these are not controlled by the banks in strict accordance with the economic conditions. The only people likely to benefit are the bondholders.

Continuing Mr Sculiin Said what was really needed in Australia was an infusion of new capital. One suggestion was to print notes. That would only be advisable until arrangements could he made for the flotation or a loan.

Bank advances might' be made where possible in order to create a stitnuius for production, marketing find givitig employment, Mi* Seulliii said he Would immediately go into this aspect With his colleagues. The whole country and newspaper# must work to some, definite plan In order to create a greater feeling t of security, seeking the best advise and aiming always at the restoration of confidence.

tie assurred the people that his Government would do nothing to ruin Australia, because that would mean ruination of the working classes, whom he had represented for many of the hP c, t years off his life.