Close to Chaos

Sun (Auckland), Volume IV, Issue 1082, 20 September 1930, Page 9

Close to Chaos

AUSTRALIA’S ECONOMIC MESS Stock Market Suffers FURTHER TAXATION IS INEVITABLE INFLUENTIAL financial opinion is alarmed by the continued unsatisfactory position of Australia’s economic position, and the view is expressed today that unless action is taken soon to devise fair measures of economy diastic steps will become necessary to avoid real chaos. All classes of stocks are suffering on the financial market in the Commonwealth.

United P.A.—By Telegraph—Copyright Reccl. 10.25 a.m. SYDNEY, Today. The Board of the Commonwealth Bank expressed the opinion that progress had been made by some States in regard to balancing their Budgets, but the Federal position was regarded as entirely unsatisfactory. The uncertainty of the outlook is accentuating the depression in business circles, and in some influential circles the opinion is held that the indecision of the Federal Cabinet Committee, which is exploring the situation, is unwittingly working up all the elements of a serious crisis. It is felt that if action is not taken shortly to inaugurate fair measures of economy, steps of a drastic nature may have to be taken to prevent the national financial position drifting farther into chaos. The Acting-Prime Minister, Mr. J. E. Fenton, today reiterated his opinion that the increased taxation was inevitable. “Even with ail our reductions,” he said, “there must be further taxation. We are not going to put any extra burden on industry.” In an article in the “Sydney Morning Herald,” relating to investors’ losses as a result of reduced or deferred dividends owing to the financial stringency, the point is emphasised that certain sections of Labour would have the world believe that the workers alone are making undue sacrifices. The "Herald” publishes a list of 115 companies on the Stock Exchange whose dividends have either been reduced, deferred, or passed altogether. The aggregate reductions involve a loss to shareholders over the year of £2,304,531, which is equal to 3.78 per cent, of the paid-up capital of £60,849,304 'represented by share issues. The recent downward tendency of shares on the exchange has been accentuated in consequence of the announcement that extra taxation is contemplated by the Federal authorities. ' Many stocks have touched new low levels. CRISIS IN WHEAT Reed. 11.20 a.m. ADELAIDE, Today. A deputation of wheatgrowers asked the Premier, Mr. L. L. Hill, to cooperate with the other State Governments to try to stave off a crash in wheat prices. One speaker contended that, on the

existing prices, it would not be profitable to take off tlie crops. Mr. Hill agreed to the course suggested. AFFILIATION VETOED Reed. 10.50 a.m. SYDNEY, Today. A proposal to affiliate with the Australian Labour Party was rejected, after an animated debate, by the New South Wales Railway and Tramway Officers’ Association. A delegate who supported the motion said it was only from the Labour Party that members could hope for betterment of conditions. WOOL PRICES Reed. 10.50 a.m. ADELAIDE, Today. The prices at the first wool sale of the season, which has just closed, were irregular. Best wool was about five per cent, cheaper than at the June sales, and ordinary was ten per cent, easier. Thirty thousand bales were offered, withdrawals totalling 20 per cent.