AUSTRALIAN FINANCE

Hokitika Guardian, 9 February 1931, Page 6

AUSTRALIAN FINANCE

CONFERENCE FAILURE. »* (Australian Press Association; j CANBERRA, February: 7. State representatives at the financial j conference described the whole proceed- ! ings as futile, and serious doubts were expressed whether anything will bo achieved by the eon.'erence. There is! strong criticism of the manner in which the Conference was conducted. It is stilted ther ewas not even an agenda paper and Ministers had nothing definite placed before them for discussion delating to the proposed years plan. 'A Mr Lang stated: —So far I have not heard a word about the plan and l come to the conclusion that the 'Government has no plan. THE FEDERAL POSITION. CANBERRA, February^. A reduction of fifteen 1 million ’sterling a year in Government expenditure is the basis of llie-; three-year- plan which*-hits been drawn' up by- the Committee of Experts to. restore Australian piusperkty:.'. “Tno ’alternative,” the experts sky, is .-“delimit in- the Government’s payments, the evils - of which would lie immeasurably greater titan..tbe hardship pjwhieif'.Jhe nation whole! be asked to fate.” Tile danger of inflation is strongly condemned,; it being remarked: “This is not tlie.rfjad to recovery, but to collapse. At: reduction of the interest rates by the savings banks is alsba possible mihins of bringing about it Jail ih interest charges. Peusion's-tif'all kinds, should be revised and made the subject, oi close examination. A road expenditure is imperative. Employment must be made profitable, and all obstacles to reduced costs must be removed.”

MR THEODORE’S PLANS. FOR 100 MILLIONS MORE INCOME. CANBERRA, February 8. Hon E. G. Theodore, Federal Treasurer, explainedAliis- long awaited financial- policy ; at' • the Premiers’ Conference. ■ --- -'y '■ He advocated the restoration of the 1929 currency levels claiming that the adoption of this plan would increase the national income by about one hundred millions. He expressed the opinion that this would provide work for between one hundred thousand and voukl cause an additional production of material' wealth amounting to t-liir-v millions a y'ear.

. Air-Theodore-emphasised that the ro’notion of interest; votes, which would be an effect of Ills policy, w-s Hie logical way of escaping from the present burden, which was becoming more and more onerous every- week- There would bo no repudiation of obligatit&s but there would be equality of sacrifice. _

FURTHER PARTICULARS. MR, THEODORE’S SCHEME OF FINANCE. „ v CANBERRA, February 8. “We Mvl}:d;;T'ealise,’’ continued .Mr Theodore,” the possibility of a. collapse with..public panic, and a filial crash, if not a social upheaval of a very serious character.” : Mr. MePhee (Premier of Tasmania) : “The crisis is litre now.” Mr Theodore,: “I admit that':, but the final crash has not yet arrived, and to stave—it off w-e have to devise some scheme of readjustment. 'Anyone wlnv has studied the capacity of . the bankyig organisations to give credit to industry, will admit they can expand .their,credit at will. They are limited only by the effect in carrying out such--a policy, ’flic banks Maised the enormous sum of ”83 millions .in Australia for military oaerations during the war. J say advisedly; 'the banks have power to create additional credit. M.v suggestion is inertly' a restoration of the value of our currency to what it was , say two. years ago, which-.docs not mean inflation, •but which would enable us to win the corner towards rehabilitalion.P\'-r

The Sunday newspapers point out by his speech. Ron. Mr Theodore enhanced his reputation as a mystery man, for,- while hinting at the reduction of the interest rates, he failed specifically to state how h<’ would carry onT~liis policy, - leaving the Premiers wondering whether it would he tantamount ,-tb inflation. Thee conference has adjourned till Monday. • LONDON, February 8. ’Flic newspapers of Saturday and Sunday publish gloomy eabKs from their Australian correspondents in reference to Canberra developments. Comment is mostly withheld pending more definite news of the decision.'