FEDERAL PREMIER

Hokitika Guardian, 17 June 1931, Page 5

FEDERAL PREMIER

ON ECONOMY (Australian Press Association.) CANBERRA, June 16. The Prime Minister, Mr J. H. Seulliu, has written to the ex-Alinister, Mr Holloway, who hys resigned,' saying:— “The economies to which you object are quite as distasteful to every other Member of Parliament, but we have to recognise that they are unfavourable The treasury figures discio. e tiiat unless we take steps to meet the position, the Commonwealth will not ue able to pay twelve shillings in the pound. Therefore, it is a question of arithmetic, and 1 not of argument, since default will mean that the pensioners, and the public servants, for whom you so much sympathise will receive nothing at all. We cannot escape the grim fact that reductions are inevitable.”

COLD SHIPMENT. NOW LIKELY TO EE SANCTIONED CANBERRA, June 16. Tlie new Legislation for meeting the five millions’ worth of Treasury Bills that fail (hie in London tin Jtitle 30tll, is ho tv being draft fid. It is unclcstood that the proposal is to ship upwards of five million pounds Worth of gold,

The new' hill to ship gold, differs from the previous one, which was rejected by the Senate. , The former bill gave the Federal Treasury the power to ship the whole gold- reserve if he thought fit. LONDON, June 16.

The ‘‘Daily Telegraph’s’ city editor infers that since Australia’s gold consignment cannot reach London by the 30th of June, funds will be made available to meet*the bills as expected, and that the temporary credits will be liquidated in gold.

NATIONALIST PRESS COMMENT. SYDNEY, June 16. The “Herald” says: Although the Federal Government will find it impossible to- give legislative effect to the economy programme agreed to by the Premiers’ Conference, without the support of the Opposition a coalition of the United Australia party, and that section, of the Labour party led by Air Scullin is unlikely. Federal Labour members are unanimous in expressing the opinion there is no possibility of such a fusion.

It is admitted however, that the Ministry is helpless without the aid of the Opposition and in the event of ft cleavage of factions of the Labour biuicUs becoming more pronounced, a political crisis involving the resignation of the Government will he inevitable witlpu, six weeks, unless a working arrangement Is mndc with the followers of Mr Lyons,