AUSTRALIA’S CRISIS.

Waikato Times, Volume 108, Issue 18117, 6 September 1930, Page 7

AUSTRALIA’S CRISIS.

MEETING THE DEFICIT. SALARY OUT PROPOSALS. FEDERAL CABINET’S MEETING. United Press Assn,.—Elec. Tel. Copyright* MELBOURNE, Sept. 5At a momentous meeting of the Federal Cabinet, to devise methods of meeting a probable " deficit of £9,000,000 at the end of the financial year, it is understood that Mr J. Lyons, Acting-Treasurer, submitted proposals for a reduction in Ministerial, Parliamentary and public service salaries, ranging from 15 per cent, on higher salaries to 10 per cent, on lower salaries. The Minister also proposed increased taxation on higher private incomes, and a tax on interest, to be applicable to Commonwealth bonds. The Cabinet was sitting late tonight, and possibly the meeting will last over the week-end. Sir Robert Gibson, chairman of the Commonwealth Bank, attended to-day at the urgent request of the ActingPrime Minister, Mr J. E. .Fenton, in order to explain xhe serious position of the finances, and to convince Mr Fenton’s colleagues of the absolute need for immediate drastic action to stop the drift. SYDNEY 1 , Sept. 5. Mr Justice Beeby, in the Arbitration Court has released the New South Wales Railway Commissioners from all industrial undertakings with the various unions. This,will enable the commissioners to pursue rigid economies. UNEASINESS IN LONDON. DISGRUNTLED OPERATORS. DECLINE IN SECURITIES. UrrlLed Press Assn.—wee. Tel. Copyright. LONDON, Sept. 5. There is a distinctly uneasy feeling in the London money market as a result of the latest advices from Australia, says the Financial News. Dealers have not hesitated to mark down values of Australian securities one or two points. Operators are disgruntled at hearing so much unfavourable talk about the financial position, after the money market's recent acceptance of £5,000,000 of Treasury bills to enable the Commonwealth to meet the bills which .matured at the beginning of the week. The cabled quotations in the commercial news to-day of the various Australian Government securities show declines on those of last week varying from a few shillings to £4 5s per cent.

LATER,

FEDERAL CABINET’S DECISION. SPECIAL ECONOMY SESSION. LEGISLATIVE PROPOSALS. ALL OBLIGATIONS WIL BE MET. United Press Assn.—Elec. Tel. Copyright. (Received Sept. 6, 9.20 a.m.) MELBOURNE, Sept. 6. The Federal Parliament will he called together in October to enact at a special economy session legislation : To deal with unemployment; To impose a special interest tax; To reduce Ministerial Parliamentary and- public servants’ salaries ; To re-adjust the maternity allowance and pensions payments; To further tax imported luxuries; To re-adjust taxation on higher incomes. The Federal Cabinet came to these decisions, and at the same time decided to honour the pledge given by Mr J. 11. Scullin to balance the Budget. The Acting-Prime Minister, lion. F. E. Fenton, declared; “The Government will uphold every obligation to the people of this country and to Its creditors.” . The Cabinet adjourned till to-day when steps will be taken to frame a sessional programme and work out details of the proposed legislation. Most of the lengthy sittings were spent in debating a suggestion that a special tax be imposed on interest. Sir Robert Gibson, Chairman of the O' mmonwealth Bank, had a threehours consultation with the Federal Ministers. He explained the financial position and suggested plans for financing the State and Federal Government over a considerable period. 1— MATTER WELL IN HAND. GREATLY EXAGGERATED RUMOURS United Press Assn.—Elec. Tel. Copyright. (Received September G, 9.55 a.m.) MELBOURNE, September 6. The Federal Ministers stated that although the financial situation, due to the rapidly declining revenues, was acute, tile Government had the matter well in hand. They asserted that the rumours of a split in the Ministry were greatly exaggerated. Hon. A. E. Green, Minister of Defence, who made a spectacular dash by aeroplane, was not present at the meeting. The Assistant Minister of Customs, Mr Forde, was also absent.