COMMONWEALTH FINANCE

Hokitika Guardian, 12 February 1931, Page 6

COMMONWEALTH FINANCE

(Ansiration Press Association.) SYDNEY, February IT. The scene of the financial wrangle has shifted from Canberra to Melbourne as tile Federal Executive of the Lahour Party assembled there to-day to deal with differences of have arisen between Labour leaders. The Prime Alinisier. Air Sctillin, and ;he Premiers of Victoria (Air Hogan) and South Australia (Air Hill), attended. but Air Lang (N.S.AW Premier), uli hough invited was not present. The rival financial policies of Air Theo'doic and Air Lang are now under consideration. Interviewed at Canberra to-day. Sir • lames Aliteheil. (Premier ol AA'estern Australia), said his State would have to reconsider its position in the Commonwealth if a policy of wholesale inllation were resorted io by the Federal Government, either with, or without'

the co-operation ol the other States. He said: “Our bond with the Commonwealth is not insoluble. Our destiny is not to he decided either by Air Theodore or by Air Lang, and we cannot recognise the right of any Government to impugn ihe honour of AA’estern Atist ralia.”

PH KSK HOST I MTV. LONDON. February 11. The “Daily Telegraph's” City Edition siivs: “Mr Lang's blazing incilsereiion cost Australia dourly to-day. CommonwealtTi and State stocks becatno well nigh unsalablo. Tlio damage to A ust ra lias’ credit, wliicli vecamo obvious later in a demand for exchange through the flights of capilal. cannot bo calculated. What is wanted to restore confidence is a prompt balancing of budgets. Every

day’s delay makes it imuv difficult to I reach an equilibrium The Common- I wealth has five millions in bills ma- j Hiring on .March 'J. The position which * was senons enough before, will lie- 1 come dose pa rate unless stronger measures are l a ken. Tim “.Morning Post’s” Financial j I’.dilor Nays: “ll .Mr l.ang has his ] way he apparently would go for whole- • sale repudiation and pure inflation of I currency. .Mr Sctillin and .Mr Then-! dore while repudiating Mr Langs’; ideas, are seemingly attracted h.v a policy involving some measure of in-, flation. because this might stimulate j industry artifically, thus improving I the yield to the Government in taxes. 1 Such a result could only temporarily I benefit, while ill effects would he last j

ing. and would in lacf lead to dis- j aster. It is hoped that as the result of j the conversations with the Common- 1 wealth Hanks, wiser counsels will pre- ! vail. The drastic curtailment of ex-| pend l lure will alone lead to a restoration of confidence as to A list rattan finances.”

LONDON. February 11. The “Times's” city editor states: ‘'While there is little change in the price of Australian-securities, the market remained apprehensive as regards events of the next few weeks. Arrangements have not yet been made to renew heavy Australian liabilities that are shortly maturing in London.” The “Daily Telegraph’s” city editors says:—“There is little doubt that a government which had the courage j to implement the Xiemeyer recommeu- j dations to Australia would meet adequate financial help here.”