No More Loans

Sun (Auckland), Volume IV, Issue 1048, 12 August 1930, Page 9

No More Loans

BAN ON STATE BORROWING N.S.W. Must Pay Its Way RAILWAYMEN’S WAGES MAY FALL SOON FOLLOWING an arrangement with the banks, the .State of New South Waters will be unable for a long time to raise loans for public services. “We are thrown on our own resources for capital development,” the State Treasurer candidly announces. Wages of all railwaymen in Australia arc likely to fall if the services are to be made payable.

United P.A. —By Telegraph—Copyright Reed. 11.20 a.m. SYDNEY, Today.

In an address on the economic situation at Epping, the New South Wales State Treasurer, Mr. B. S. Stevens, said: "An agreement we made with the banks means that we will not be able to raise any further loans abroad for public works and services for some considerable time, and we are thrown on our own re sources for capital development. "As from September next the Governments will be required to transfer to London credits ai the rate of ap-

proximately £3,000,000 a month to satisfy external debts.” At a recent meeting of the Loan Council at Canberra, which was ad dressed by Sir Otto Niemeyer, an undertaking was given by some of the State Treasurers that, subject to the approval of their Cabinets, they would apply to the Federal Arbitra tion Court for an all-round reduction in the wages of railway employees. The Treasurers expressed the opinion that without increased revenue it was impossible for them to carry ou the railway services if the present rate of wages were maintained.