FEDERAL POLITICS

Hokitika Guardian, 30 April 1931, Page 6

FEDERAL POLITICS

AUSTRALIAN GOLD RESERVE.

LONDON PAPER COMMENTS.

(Australian Press Association.)

LONDON, April 29

Australia is again figuring prominently in the press in connection with the proposed gold shipment and the news of another New South Wales default.

The “Financial News’ says: “London banking circles are of opinion that Mr Scullin’s proposal about the gold shipment is thoroughly undesirable. The abolition of the Australian gold backing would do further damage to the waning credit of the country, and be a serious obstacle to the restoration of confidence. It would remove the last vestiges of a gold standard, and would make a return to that system extremely difficult. If it is true, however, that the only alternative to the gold shipment is default, then the use of the gold reserve may be the lesser evil. After all, the gold reserve was primarily accumulated for use in an emergency, but the possibility of arranging the funding or the replacement of tho maturing Treasury bills seems at present remote. The Senate, therefore, may find it necessary to pass the Bill, unless the Commonwealth Bank finds the money N.S.W. INTEREST BILL. FOR FEDERAL GOVERNMENT. CANBERRA, April 29. The net obligation upon the Commonwealth, should the New South Wales Government continue to default to the British and American bondholders, will be £2,249,000 up to June 30th next, in addition to the heavy exchange. LANG’S POLICY. A DENUNCIATION. SYDNEY, April 29. 'Pile Federal Labour Caucus has issued a statement declaring that a failure of the New South Wales State Savings Bank thus being the inevitable repercussion of the Lang Plan, which has been responsible for two thousand men and rvomen losing their employment, while many thrifty workers, with their life’s savings in " the Government Bank, arc now forced to apply for the dole. AUSTRALIA’S POSITION.

(Received this day at 8 a.m.)

MELBOURNE, April 29

Speaking at Ballarat, the Federal Treasurer (Mr Theodore) held out no hope of Australia meeting her overseas obligations except by an increase of commodity prices or the extension of long term credit abroad. “We cannot carry on without these conditions. There has been a coolness overseas towards Australia for a long time. There is no reason why our five per cent loan is at seventh- sterling while New Zealand is at ninety-eight and South Africa at one hundred sterling. This must he due to a series df mis understandings. The blame cannot be all with one party. We must cease rancour* ous fighting and try to brush these misunderstandings away.

MESSRS SCULLTN AND BEASLEY

DISPUTE

CANBERRA, April 30

A dispute between Mr Scullin mill liis former Lent., Mr Beasley, now lender of the Lang group, occurred in the Hourse of Bepresontati vos and tliere were charges of lying. Mr Scullin, in course of liis statement, said that Sir Bobert Gibson's re-appointment to the Oommonwoalth Bank Board was by tlie unanimous eon. sent of Cabinet.

Mr Anstey declared that lie objected to the re-appointment and put his protest in writing so there would be no mistake.

Mr Beasley said that lie was wrongly represented hv the Prime Minister. The re-appointment was not unanimous, and lie did not support it.

Mr Bayley asked Mr Scullin whether in view of the statement of Messrs Beasley and Onstey he had any explanation to make. Mr Scullin replied:--“I emphatically deny both statements.”

Amid an uproar Mr Beasley called out—“l deny that.”

Later when Mr Scullin repeated the declaration unanimous Air Beasley cried:—“You are lying.” Mr Scullin :—“Tt leave it to the members to decide who has told the truth.”