POSITION IN AUSTRALIA.

Otago Witness, Issue 4030, 9 June 1931, Page 27

POSITION IN AUSTRALIA.

THE MELBOURNE GATHERING PROPOSED CONVERSION LOAN. MELBOURNE, June 2. The Premiers' Conference decided that the currency of the proposed conversion loan should be divided into 10 maturing periods of from seven to 30 years, with provision for the large holders to take a proportionate sum in each case. LEGAL COAIAIITTEE’S REPORT. AIELBOURNE, June 2. The Premiers’ Conference received a report from the Legal Committee, which recommends a reduction of 20 per cent, in individual salaries, wages, pensions and similar payments by all Governments, and a reduction of 224 per cent “by legislative direction or pressure” of all interest payable in respect to fixed term money obligations. The report was adopted. BONDHOLDERS IN ENGLAND. LONDON, June 2. According to the Financial News a number of Australian bondholders here are so alarmed at the financial proposals in Australia that they have suggested the formation of a bondholders’ committee to protect their interests, arguing that it would be useful whatever happens. They declare that if the internal conversion scheme is carried out their interests will be in jeopardy.

AN TAIPORTANT AAIENDAIENT. MELBOURNE. June 4. With the Premiers of Tasmania and Western Australia dissenting, the Pre iniers' Conference decided that a tax of 25 per cent, shall be imposed on bonds not converted into the new 4 per cent. loan. Citing fortunes in tax-free securities in New South Wales. Mr Lang demanded that the holders should not be allowed to escape the general penalty. An important amendment in the terms of the loan—“ That the Government has the option of redeeming all or part of it after 1950 ” —was agreed to. The chairman of the Commonwealth Bank Board (Sir Robert Gibson) was invited to meet the conference to-day. STATEMENT BY AIR SCULLIN. MELBOURNE, June 5. Air Lang's motion at the Premiers' Conference that a penalty tax of 25 per cent, be imposed on tax-free bondholders if they failed to convert their holdings was rejected. The conference came to no decision on the question. It is felt that if a solution to .this difficult problem can be found the end of the conference is in sight. Air Scullin said if bondholders did not convert there was no alternative but to default at the end of July. Budgetary estimates, showing the effect of the 20 per cent, reduction in Government expenditure, was presented by the Commonwealth and some State Governments. It is understood that the statement presented by the Commonwealth was highly satisfactory to the conference. CONFERENCE ADJOURNED. SYDNEY, June 5. The Premiers' Conference has been adjourned till Monday. The Prime Mini ster stated that no .part of the plan for the restoration of Budget equilibrium had been yet adopted. The conference was seeking a plan which would have the support of the whole conference Only general principles had been affirmed, and these related to the con version loan and to drastic cuts in expenditure, which would require special legislation by each Parliament in order to give effect thereto. The conference to-day decided to invite the leaders of the Opposition in the Senate and the House of Representatives to attend on Alonday. A further discussion occurred to-day upon the method of dealing with taxfree loans. The Prime view was that the holders of these securities should be assured that no attempt would be made to repudiate the contract made with them, but that they must be prepared,' like others, to. come under a general scheme of conversion at a rate of 4 per cent. Otherwise it was likely

that they would be subject to somfe specially imposed Commonwealth taxation.

ACCEPTABLE PLAN IN SIGHT. . SYDNEY, June 6. The morning newspapers here agree “> a t the prospects of agreement at the Melbourne Premiers’ Conference are brighter. The atmosphere has improved and an acceptable plan is in sight.

DRASTIC SALARY REDUCTIONS. „. SYDNEY, June 7. The Sydney Sun says that Air Land’s economy proposal startled the Premiers’ Conference during the secret session, when plans for reducing the Government expenditure by 20 per cent, were disclosed by the treasurers. The New South Wales Government, said Air Lang, proposed to conform with the conferences resolutions relating to a reduction by reducing the salaries and payments of every person in the employ of the Govei nment to a maximum of £5OO per year. That included the Governor, the judges, railway commissioners, the Auditorgeneral, Alinisters, members of Parliament, and those people holding statutory appointments. Air Lang indicated that £1,000.000 would have to be saved on salaries. It was proposed to take approximately the whole of this from the higher paid officers, but should any further amount be required, adjustments might have to be made lower down in the scale. FEDERAL CUSTOAIS REVENUE. CANBERRA, June 2. For the expired 11 months of the financial year the Customs revenue amounted -to £26,090,736, a drop of £13,497.780 on the corresponding period of 1930. The revenue was £10,300,931 less than the estimate. The postal revenue was £1,963,629 below the estimate. NEW SOUTH WALES SCANDAL. SYDNEY, June 2. In the Legislative Assembly, Air Dunningham (Nat.) secured an adjournment in order to discuss the reputations of some 90 dole inspectors wlio were recently appointed by the Lang Government. Air Dunningham gave the names of three who had been dismissed from their unions for misappropriation of of union funds. Another had been in prison as a member of a basher gang during the timber workers’ strike, while still another had been accused of witnessing false declarations at the last State elections. lhe House was in an uproar. Opposition members declared that a greater scandal had never been exposed in the history of State politics. STATEMENT BY MINISTER. SYDNEY, June 2. In the Assembly Mr Baddelev (Alinister of Labour), replying to A*lr Dunningham, said that he was not aware that any dole inspectors. were undesirables, but he would make the fullest inquiries from the officer who was responsible for the The motion was talked out. IMPORTS DURING APRIL. SYDNEY, June 8. The Commonwealth Statistician reports that the imports into Australia from overseas during April, 1931, were the smallest recorded in any month since the war period. They totalled £2,851,827 at British currency valuations. The imports during April of 1930 were £8,908,426 For the first ten months of the financial year the imports decreased by £61,277,756, compared with the same period last year. THE CLOSED SAVINGS BANK. SYDNEY, June 3. Stating that the Government Savings Bank had been one of the sources of the State’s success, Mr Buttenshaw, AI.L.A., pledged the Country Party to give Mr Lang every assistance to’ enable the bank to reopen. The Country Party leader was a member of the delegation that waited upon the Bank Comniis sioners urging that every effort should be made to retain the bank. THE LAW REFORAI BILL. SYDNEY, June 3. The Lang Government’s Law Reform Bill created so much controversy th-it it was finally referred to the Supreme Court judges for a report. The judges unanimously expressed the opinion that the Bill would prove unworkable and aggravate the evils it was designed to cure. It would enormously increase delay and expense, as well as create a greater uncertainty of the law. The Bill made revolutionary changes in methods, procedure, and costs, which would lead to most unsatisfactory results.

EXCHANGE RATES INCREASED. SYDNEY, June 3. The exchange rates, Australia on New Zealand, were increased to-day. The buying rate was fixed at £llB 12s 6d in Australia for £lOO in New Zealand, and the selling rate at £ll9 7s 6d for £lOO in New Zealand. NEW SOUTH WALES FOOD RELIEF. SYDNEY, June 5. - - The Acting Premier (Air Baddeley) announced that the food relief rations would.be increased by 25 per cent, from June 15.