AUSTRALIAN CRISIS

Hokitika Guardian, 3 July 1931, Page 6

AUSTRALIAN CRISIS

LONDON OPINION.

(United Prpao Asnouiautou —By Electric Telegraph—Copyright LONDON, July 2. The “Daily Telegraph’s” financial editor says: -'Australia’s financial crisis is now generally regarded as having ended. Though there still are serious difficulties to he overcome, the signs of confidence in Australian securities are evident, and have been for some time. The values ol Australian stocks have enjoyed a remarkable recovery. Unless something unforeseen happens, this recovery should be maintained. The courageous investor has still the chance of obtaining trustee securities on attractive terms. ’ SYDNEY STOCK EXCHANGE SYDNEY, July 2. On the Stock Exchange an atmosphere of restraint prevails in the in vestment market. It is due to the approaching conversion loan campaign and to larger political issues depending upon the results. A general weakness in Commonwealth loans continues. •Colonial sugar shares rose cheaply today. The buyers were offering CIO IDs while sellers asked C4l 10s. Bank shares are generally steady to firm. ,

AG AINST CONVERSION PLAN

SYDNEY, July 2. A leading firm of sharebrokers has issued a weekly letter declaring that the Premiers’ Plan should not he in the hands of the present Federal Government. It also asserts the plan lacks entirely a basis of sound government, and adds: “We fear that.-in years to come, tin' plan will he regarded as the greatest delusion. So far from restoring the confidence, as its advocates gibly claim, the Plan lias utterly destroyed the confidence in Government securities. The Loan Conversion Bill, now before Parliament, is simply the embodiment of default and of repudiation. It is a charter of Austro* lia’s degradation. Unless, by some other means, confidence can be restored we cannot view the prospects before Australia without grave misgivings.’*

CONVERSION LOAN

, SYDNEY, July 2. Mr Lyons, speaking at Sydney wireless-station, and relayed to all other States, said a successful voluntary conversion on the immense scale not contemplated, would be t lie most itrumphant vindication of Australia’s national ehaacter. "I can imagine it can lie a gostuo to the wrold,” which would do more than any other single tiling to revive confidence, set the wheels of industry going again, and lay the foundation for retorntion of prosperity.”

N.S.W. DEFAULT

CANBERRA, July 2. Further payments on behalf of New South Wales, of approximately a million and a half sterling, were made at London yesterday, by the Federal Government. FEDERAL TREASURER. (Received this day at S a.m.) SYDNEY, July 3. The Federal Treasurer, Mr Theodore, broadcasting the financial situation said it was quite impossible for any country to maintain a monetary policy different from the country with which it was trading, while any man who thought it was possible to maintain wages, pensions and interest at former levels was living in a world of illusion. He added that the national income of Australia next year would be 250 million sterling less than hitherto.

ME LANG’S MOVE.

OV ER GOVE R NOR’S H EAI). SYDNEY, J uly 2. A luitter controversy is proceeding concerning the propriety of Mr Lang's action in releasing for publication a confidential “memo” with the Governor. Mr Bavin had intended to raise tli matter in the Assembly to-day, bo" as a result of a private communication from His Excellency, nothing happened. •V special meeting of the Sta.e Cabinet was held to-day, but the outcome was not divulged. It is, nmvnver, understood that it was decided to ask the Dominions Office to permit additional appointments to the Legislative Council, and also to ask the British Government to recall the Governor.