FEDERAL FINANCE

Hokitika Guardian, 24 February 1931, Page 3

FEDERAL FINANCE

A CONFERENCE. (Australian Press. Association.) MELBOURNE, February 22. After a discussion lasting three and n-half hours on Saturday afternoon, the conference of the representatives of the Commonwealth and the Banks adjourned till Monday without reaching any decision on the financial situation.

Alter the conference, Mr Scullin and Mr Theodore refused to comment on it. It is understood that the whole time was occupied with Mr Theodore’s plan for a release of credits for the Government and for industrial purposes and for the restoration of the 1929 price levels. AUSTRALIAN STOCKS. RISING AT NEW YORK. NEW YORK, February 21. Continuing their recovery after having slumped to the lowest price in recent years, the Australian Government’s loans were buoyant on the Rond market to-day. Two of the five per cent, issues advanced by three and one eighth points. Four and a-half per cent, went up two points. Queensland States sixes advanced by seven and the seven per cents rallied two points.

PAYING OF DEBTS. £5,000,000 NEXT MONTH. SYDNEY, February 22. Commonwealth Treasury officials confirm the announcement that arrangements have been made to meet Australian obligations in respect to five millions sterling worth of short-term indebtedness falling due on March 3rd. A portion of this amount represents State indebtedness. The Now South Wales Treasury announces that there will ho no difficulty in meeting the State interest Falling due at the end of this month of one hundred thousand sterling, and also a debt due at the end of March totalling three hundred thousand. NO REPUDIATION. LONDON, February 20.

The announcement that the Commonwealth. is paying off short term five million Treasury Rills on March 2, created a most favourable impression in tho city, as a welcome gesture against the repudiationists, also as a useful tonic for those investors fearing a default was imminent. There is the strictest secrecy as to where the money is being obtained from. Most guess the Rank of England.

The effect on the Stock Exchange was . very satisfactory. ' Tt not only checked a decline in Australian stocks hut several showed appreciable recovery. ■ . ..

The Statist says: Though the constructive part of the work of rehabiliation in Australia remains to ho dotv. we can derive satisfaction from the check administration to the forces of destruction. The decision to repay five millions sterling Treasury Bills maturing on March 2, is wise, as a more inopportune moment to renew could not he chosen.

GOVERNMENT’S REFUSAL

DECLARE EMERGENCE. SYDNEY, February 21. Tho Trades’ Union delegation, which visited Canberra to ask the Federal Government to declare a state of National emergency, has presented its report to the Australian Council of Trade Unions’ Congress to-day. Mr W. Duggan, the Chairman, said that the Federal Government assured the delegation that it had no power to declare a state of national emergency unless some hostile action was taken, warranting extreme measures'. Moreover, it has’pointed out, if the Labour Government adopted tin’s course and thereby established a precedent there would be nothing to prevent their opponents, when in. power, from acting in a similar manner.

MR LA NG’ S PROPOSA LS. CUTTING INTEREST CHARGES, (Received this day at 8 a.in.) SYDNEY, February 24. The New South Wales Government’s attitude towards its overstaff obligations were recapitulated by Premier Lang in a statement of policy before East Sydney electors to-night at Paddington Town Hall. “Our plan is a complete scaling down of all interest charges, and until such time as oversea financial interests extend to Australia conditions of repayment similar to those given by United States to England, we shall make no further payment of interest. Coidd anything be more pitiful than the continuous meeting of Australian Premiers where from nothing over results. It is time that Australian Governments forgot London and began to think of Australia.”

Mr Lang added that it was wrong to say tho Commonwealth Government would have to pay New South Wales debts, if New Seouth Wales Government defaulted. Apart from the fact that thp Commonwealth could not pay its own debts, lie reminded his hearers that New South Wales paid its interest debts through its own bank, divert to Westminister Rank London, whil ; > interest- cheques for local loans were paid direct from the State Treasto haul holders.

The T-'hour movement in New South Wale:, dir.ocintnil itself from any pro-

erodings between the premiers Conference and hankers. Mr Lang added—The second step in New South Wales financial policy, was to reduce the interest on Australian loans to three per cent., whereby bondholders would be making an adequate equitable distribution to the country when most needed, and once the rate of interest of Government loans was down, hank interest would he forced down by the Government, if necessary. These two features could he put into effect without the concurrence of the Upper House. Government also proposed to alter the currency and adopt a gold standard. He urged the electors of East Sydnev to give a lead to Mr Scullin and other Governments in this matter of radical financial reform. The crowd cheered Mr Lang enthusiastically. B ANK EE S AGA IN CONFER. MELBOURNE, February 24. Rankers are holding a private conference fo-dav. Their report should ho avail'hie for the Federal Treasurer te-’"orrow. who in turn will place it before the Fedrnl Cabinet, who are now anxiously awaiting it.