SCULLIN’S SPEECH

Nelson Evening Mail, Volume LXIV, 17 January 1931, Page 7

SCULLIN’S SPEECH

THE INFLATION ISSUE CONTRADICTORY PRESS OPINION (United Press Association—By Eloctrio Telegraph—Copyright) SYDNEY. 16th January. Mr Scullin’s speech at Ashfield has left, the Australian public wondering where lie really stands on the subject of inflation. The Sydney “Morning Herald’’ heading up of the speech reads “Against Inflation. Scullin’s emphatic declaration.” The “Evening News” in an editorial to-day says: “The stark fact remains that Mr Scullin has broken the Melbourne Agreement and consented to inflation. He wrapped it up in words in the hope that the audience would not notice it.”

The “Sun,” in an editorial, says he declared himself for neither inflation nor deflation, but for a rational use of credit and currency to get the wheels of industry running again. The “Sun” adds: “That is the note which is needed to restore confidence in Australia at home and abroad. This certainly is a splendid gesture.”

AGAINST INFLATION EMPHATIC DECLARATION (Received 17th January, 10.30 a.m.) SYDNEY, This Day. Mr Scullin, in explaining his Aslilield remarks, declared himself definitely and emphatically against inflation in any form. He says he lias no intention of printing notes to the face value of £20,000,000 to pay for public works even as a temporary expedient. “There appears to be a misapprehension in some quarters,” said the Prime Minister, “and I wish to remove it. Issuing notes for public works would be disastrous.” RELEASE OF BANK CREDITS BANKS AT END OE RESOURCES MELBOURNE. 16th January. Mr C. 11. Tranter, chairman of the Associated Banks, discussing Mr Sculliu’s speech, said it was all very well talking about the release of bank credits. Banks were already doing as much as possible. They could only sell credit if they could buy it. The notion was prevalent in some quarters that banks had unlimited credit in their vaults. That was entirely fallacious. Indeed, the banks had reached the end of their resources. The Government, not the banks, could relieve the position. However, there was no need for panic. The efforts of some people to send money out of the country were most undesirable. He instanced the case of one man who paid £26 for £IOO in London, EFFECT ON EXCHANGE MORE CONFIDENT TONE SYDNEY, This Day. Tlie Prime Minister’s speech on the Federal financial policy imparted a more confident tone to the investment market to-day. This is reflected particularly in the loan and banking sections, which had suffered reverses on account of inflation talk. Prices were higher in both groups. Hundred sterling bonds 5| per cent., 1933, advanced by 18s 9d, 5| 1931 by, 11s 3d, sixes; 1936 by 16s 3d, sixes 1937 by ■ 17s 6dj sixes 1938 by 7s 6d. Bank of New South Wales rose 5s to £27, New Zealand Insurance 2s, Colonial Sugar up to 2s 6d. A RAY OF HOPE MELBOURNE, This Day. Mr Scullin’s speech had a stimulating effect on ’Change prices. Seven Commonwealth issues showed recoveries from 2s 6d to 17s 6d per cent. The turnover reached the high level of £33,000 this morning. The Prime Minister’s speech created a favourable impression in Victoria. It is regarded as a little vague on inflation, but the feeling generally is that it affords a ray of hope. MR BAVIN’S VIEW DIFFICULT TO CO-OPERATE (Received 17th January, 8.50 a.m.) SYDNEY, This Day. Mr Bavin, Leader of the State Opposition, points out that Mr Scullin’s suggestion for a little temporary inflation pending a loan would defeat its own object. The very fact of adopting inflation would destroy a chance of raising the loan. It was equally difficult to co-operate with the .Government in facing tlie financial crisis until the Government stated exactly where it stood on the subject of inflation. RELEASE OF CREDITS ADVOCATED (Received 17th January. 10.30 a.m.) SYDNEY. This Day. Speeches (in the Parkes electorate show that Mr Theodore has swung in behind Mr Scullin He made no criticism of Mr Scullin’s Ashfield declaration. In fact he too declared himself against inflation. On the other hand, Mr Gibbons, M.P., in an address at Undercliff, advocated the immediate release of credits. “Australia cannot exist for another three months unless deflation is arrested,” lie said. “Credits must be supplied to assist the man on the land who is in a serious plight. Credits alone will save him. Wheatgrowers at present owe the associated shopkeepers of the State £12,000,000. Wo could safely issue another £15,000,000 and, keep within the 25 per cent, standard.” AUSTRALIAN BONDS ADVICE TO HOLDERS LONDON, 16th January. “Worth keeping” is the simple oneline heading on the front page of the “Daily Express,” under winch appears tlie following “Interviewed to-night, the ‘Daily Express’ city editor.said: ‘Don’t sell Australian bonds now.’ ”

RESTORING CONFIDENCE

LANG AND LOAN COUNCIL LONDON. 16th January. Commenting on Mr Scullin’s Ashfield speech and also reviewing the position as regards the Loan Council, the “Times” says that the Labour Government of the Commonwealth, if sufficiently determined can bring pressure on the Labour Government of New South Wales to fall into line and play the game. The danger of a crisis is weakening confidence. Once confidence is restored there will be no lack of readiness to help overcome the temporary diffiulties. Mr Scuilin only requires to show a firm front to both his difficulties and to the extremists in order to put Australia on the high road to recovery.