PAYMENT ORDERED

Ashburton Guardian, Volume 51, Issue 145, 1 April 1931, Page 5

PAYMENT ORDERED

NEW SOUTH WALES INTEREST.

FEDERAL GOVERNMENT ACTS.

INSTRUCTION TO THE BANK. (United Press Association —Copyright) (Received Tills Day, 10.5 a.m.) CANBERRA, This Day. The Prime Minister (Mr J, H. Scullin) announced that, in accordance .with the Commonwealth Government’s decision, arrangements have been made with the Commonwealth Bank to pay the interest due by the New South Wales Government to British bondholders.

OPINION IN LONDON. FEDERAL DECISION APPROVED. LONDON, March 31. The ‘ ‘Daily Telegraph” says: “The Commonwealth Government has vindicated Australia’s good name with commendable promptitude. The messages from Australia bear striking witness to the general anxiety lest Great Britain should think Australia, capable of following Mr Lang’s vicious and wicked lead. Repudiation has teen violently repudiated. The best solution would be for New South Wales to throw Mr Lang out neck and crop before he does more mischief.” ,

The “Daily Express” says: “Yesterday many timorous buyers who sold their bonds in panic are buying them back at increased prices.” “The Times” says: “Mr Thomas’s announcement in the House of Commons was received with relief. It will do much to repair the harm which Mr Lang has done. It can safely be said that Mr Lang has made his countrymen realise the danger of putting politicians in power who cannot be trusted to maintain the financial integrity of their country.” The “Daily Herald” says: “Australian opinion generally is very annoyed that Australia should have to pay Great Britain a far higher rate of interest in her war debt than Great Britain pays America; but to feel a grievance is one thing, and the attempt to remove it by Mr 'Lang’s; rough-and-ready methods is another. The decision! of the Commonwealth Government makes Mr Lang’s heroics look foolish.” The “News-Chronicle,” in a leading article, says: The Federal Government* s decision to meet the New South M ales interest payments, was Australia’s patriotic retort to Mr Dang, who cuts a sorry figure. He would doubtless ho swept- from office if the General Elections were to occur to-morrow. The “Morning Post’s” diplomatic correspondent says: “ The Australian situation is now .viewed with greater optimism than has teen, evident ior some time. Mr Lang’s declaration touched Australian pride, and the pendulum is now swinging in the opposite direction. It is possible that the Theo-dore-Scullin policy of compromise will shortly cease to be considered as a way out- in favour of the downright policy or reconstruction as advocated by the All-for-Australia League, and also by Mr Lyons. With such a policy in force London finance will not be slow to respond . ’ ’

ALL ROUND RISE IN STOCKS.

PRICES ON LONDON EXCHANGE. LONDON, ,March 30. The announcement of the payment of New South Wales interest brought many buyers’ orders for Australian stocks, which found sellers scarce. Consequently there was a- rapid all-round recovery of prices, with considerable dealing* in Commonwealths fives from £72 to £77, and sixes £B4 to £9O. Other prices were: Victorian 3j per cent £6O; 5 per cent £7O to £73 ; ripper cent. £6B; New South Wales, 4 per cent. £Bl to £B3; 3 per cent. £6B to £75; 31 per cent. £sl to £57; 53 per cent. £B2 to £B3; 6$ per cent. £BO to £88; 6 per cent. £73; Queensland, 5 per cent. £6B to £73; 3 per cent. £53; South Australia, 31 per cent. £io; Tasmanian, 6J per cent. £9O; Western Australia, 3 .per cent. £72 to £/3; 6 per cent. £Bl to £B3. GENERAL SATISFACTION. SYDNEY, March 31. The Prime Minister’s announcement that the Commonwealth Government will pay interest due to British bondholders by the New South Wales Government, which is defaulting, has caused the greatest satisfaction in Australian political and business circles. Mr Scullin has received several cablegrams from England to-day, including one from Mr J. H. Thomas (Home Secretary), expressing gratification at tho Commonwealth’s action.

ATTEMPT TO HEAL BREACH.

WORKERS’ UNION ACTIVE. SYDNEY, March 31. It was revealed to-night that a desperate attempt was being made by Labour stalwarts to heal tho breach between the Federal and State executives, in view of the likelihood of an early Federal election. The initiative is being taken by the Australian Workers’ Union, whose organisation is strongly represented in the Federal Ministry.