Footing the Bill

Sun (Auckland), Volume IV, Issue 1058, 23 August 1930, Page 9

Footing the Bill

AUSTRALIA READY TO PAY “Boom Debauch is Over” REAL TEST MUST COME LATER ON United P.A.—By Telegraph—Copyright SYDNEY, Friday. AUSTRALIA is stirred and deeply concerned by Sir Otto Niemeyer’s report, together with the drastic decisions at the Premiers’ Conference and of the Loan Council. The whole subject is on everybody’s lips. The majority of the people are resigning themselves to the inevitable.

The “Evening News’* says: “The great ‘boom, borrow and burst’ debauch has ended. The bill is presented and we shall have to meet it. Sir Otto Niemeyer has said he has diagnosed the case and prescribed the medicine. We must ourselves administer the dose.” The Loan Council has undertaken to raise no further loans overseas until after the existing oversea shortterm indebtedness has been completely dealt with. Attempts will bo. made to eliminate the duplication of Commonwealth and State services. The standing committee appointed at the Melbourne conference is to watch the operations of the common plan idea for the rehabilitation of Australian finance. The Acting-Prime Minister, Mr. J. E. Fenton, announces that there is no Intention at present of holding a special session of the Federal Parliament. BANKS CALLING UP As a result of the slump on the Stock Exchange, some of the Australian banks have already called up overdrafts made solely on the security of stocks and shares, which policy has contributed in no small measure to the continued heavy selling pressure on the Stock Exchange in the past few weeks. Commonwealth bonds, however, are holding their own. Between now and the end of 1934 the Australian Governments will have to cover internal and external debt obligations already existing, without allowing for current financing throughI out that period, of about £261,000,000, ! of which £39,000,000 represents float- | ing charges. However, as Sir Otto Niemeyer points out, there are no overseas maturities of significance in 1931, and the interval will afford a respite for the

harassed Treasurers. But in 1932 external loans totalling £13,0U0,000 will mature. WATCHED FROM LONDON A message from London says Australian affairs figure prominently in the Press. The “Daily Telegraph” says there is no member of the whole British Commonwealth of Nations which would not feel its pride lowered if Australia fell short of the highest standard in meeting her obligations. The conference of the State Premiers was deeply impressed by Sir Otto Niemeyer’s statement that the pledges given should produce an immediate ameliorative effect on Australian credit. The real test will come, says the newspaper, when the drastic diminution of revenue has its inevitable reactions upon wages and standards of living and the economies in the departments. The “Morning Post” says the crisis is nothing more or less than a nemesis on the orgy of extravagance. The position in Australia should provide a grim warning to the British Government of the fate of countries which refuse to cut their coat according to their cloth. COURAGE NEEDED The “News-Chronicle” says the execution of the decisions of the Melbourne conference will need nerve and courage. “The Times” says that while the Australian cricketers are emerging brilliantly from the ordeal of the British climate their compatriots have made a successful start in a grimmer test on the home ground. Fortunately, it is unnecessary to take the situation too tragically. Sir Otto Niemeyer rightly emphasised the dark side, in order to convince the | authorities of the necessity for drastic j action. Certainly it appears that he ! had succeeded in his object.