The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JANUARY 19, 1931. NO INFLATION.

Hokitika Guardian, 19 January 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JANUARY 19, 1931. NO INFLATION.

The news irom Australia at the week end with regard to tiie policy speech of the Prime Minister (Mr Scullin) was not too clear. This is borne out by the facto that Mr Scullin had to exp.ain his speech for the enlightenment of the' critics who had not put too happy an interpretation on tiie address. The explanation caught up the point about inflation, on which Air Scullin declared himself definitely and emphatically against it in any form. That could hardly he clearer. But the position would be better clarified if Mr Scullin threw some light on the Government proposals regarding “stabilisation,’’ which he makes a main plank. The range of exchange against Australian moiie.v is <o great that certainly stabilisation is the most urgent requirement for the betterment ol the conn ry. lit can be felt, however, that Mr Scullin, (as would Australia as a whole) is being handicapped and certainly prejudiced by the acts of Mr Lang as Premier of New South Males. Mr Lang has decided not only to shorten working hours, but also to put up wages at a time when more produo tion would Ixt a material means to stabilise tbe credit of the country. It is conceivable that tiie reckless financial policy of the recently elected Government to nflice in the Mother State, is one of the chief causes operating in favour of the increasing exchange, rate. The banks must of necessity protect themselves. It is better for them to make money dearer, than to allow a drift to go on, and the public to find later that the banks are not able to carry on. The banks work

largely on credit for business and alien a responsible leader at the head of banking affairs in Australia, broadcasts the fact that ‘‘the banks have reached the end of their resources,” is is surely time lor those directing the public policy of the country to take notice and endeavour to relieve the position. Mr Lang is pulling in the opposite direction, and we can quite Ix-lieve such an effort hampers Mr Sen II in very greatly. The Prime Minister, strange to sav, will find his strongest and n ost reliable support with the Opposition, if lie shapes Ins policy definitely towards maintaining solvency. Mr Latham, the Leader of the Federal Opposition, has publicly stated he and his followers will range under Mr 'Seullin’e banner if he advocates and directs a policy to save the country from disaster. Mr ftciillin has had the benefit of the opinions and advice of the leading British fin-unci'-rs, and surely he can bo definite about the remedial measures lie has in mind; The situation created by New South Wales is so serious that the London Times, calls on Mr Scullin to bring pressure on Mr Lang and bring him into line. There is a danger if ting for, arises, The Australian bankthe crisis Mr Lang appears to be pintera, too, hint fit the possibilities, plainly s utjng the Government can relieyo the position. All thjs emphasises the real gravity of the position for Australia, and private news confirms the results, many lormerly well to do busimss people being mined already and premises closed up. Ihe Commonwealth is passing through most difficult times, yet nothing statesmanlike is being attained or even suggested to meet the position. The talk has been going on long enough. Mr Lang alone is the stormy petrel. He has flouted the Loan Council and broken the pledge given by his predecessor to balance his budget. In lieu thereof he proceeds to make the general situation worse, bv shortening hours of work and increasing wages. The fortunate few who have work will have more time in which to spend the increase! Many thousands meantime are workless, and the credit of the country is diminishing. There is certainly the need for prompt action, and Mr Scullin will earn undying fame if he will set about the recovery ol the country by a clear cut policy which the people can grasp and appreciate, rather than talk in riddles which are ■but little clearer even following : his explanations.