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Hokitika Guardian, 30 January 1931, Page 4

In the course of an article commenting on the position of Federal Politics under Mr Scullin, an exchange says that the return of Mr Theodore to the I edema 1 Treasureship at this juncture is likely to he regarded with uneasiness in both Australia and the Old Country because of opinions which lie has expressed in relation to the all-important financial situation. He had been an advocate in greater or less degree of the policy of inflation. He has been persistent in his attacks upon the hanks and hanking institutions and in his advocacy of a reversal of the preset banking policy and of “the injection of a large volume of credit purchasing power into the country s monetary system.” It is sufficiently apparent that “the injection of credit purchasing power” is only a euphemism for inflation. It has been suggested that Mr Theodore would not find it difficult to readjust Ids views on the subject of inflation and make them conform with those of Mr Scullin. It is just possible that there is as much room for the suggestion that Mr Scullin might readjust ibis Rie-ws to those of Mr Theodore, on whom lie obviously places considerable dependence. But it is only reasonable to suppose that the readmission to theFederal Cabinet of a politician holding Mr Theodore’s opinions must tend to weaken the confidence, inspired by Mr Sciillin’s utterances at Home, that the Federal Government would adopt the only safe policy in relation to public finance. Tn his speeches since bis return to Australia Mr Scullin has not been as explicit as he- might have been upon this all-important cviostion of jiil'icy. In one address ho declared, in rather cyptie terms, that the remedy for the malady from which Australia is suffering is “neither inflation nor deflation, hut restoration and stabilisation.” His denunciation of any measures that would mean “wild inflation” was accepted in the Old Country ns expressing a determination to resist proposals for the inflation of the currency as a means towards financial recovery, and a.s implying his definite refusal to make such concessions to the extremists as might be. ruinous to the- country. The impression would appear to have been created in Australia that, though emphatically opposed to the caucus plan of dangerous and" uncontrolled inflation, lie may advocate a mild form of inflation with certain limitations and safeguards. If, in spite of Mr Scullin’s undertakings, inflation should form part of the. Federal Government’s programme, Australian credit in London will inevitably suffer. “People who want magic must get a wizard,” Air Scullin was reported to have said in one of Ins recent speeches. Some neonle may now he tempted to ask whether the deficiency is to he supplied in the person of Mr Theodore ns Federal Treasurer.