HUGE LOAN.

Auckland Star, Volume LXI, Issue 162, 11 July 1930, Page 7

HUGE LOAN.

£30,000,000 NEEDED. Australia's Dire Financial Necessity. CLEAR UP LONDON POSITION. (United P.A.—Electric Telegraph—Copyright) (Received 11.30 a.m.) CANBERRA, this day. The Federal Prime Minister and Treasurer, Mr. J. H. Seullin, announces that the Loan Council must secure overseas not less than £30,000,000 in the near future in order to clear up the London position. Failure to make such provisions will lead to an embarrassing position. Further, it is not proposed to extinguish the accumulated deficit of °£G. 500,000 by taxation. It will ,be covered by means of a loan appropriation of £7,000,000. The Government suffered a setback ■when the Senate, against the wishes of the Ministry, referred to a select committee the bill to create a Central Reserve Bank. It is expected that Mr. Scullin's new Budget proposals will meet with strong opposition in the Senate, especially the company tax and the sales tax. Replying to criticism, , the Prime Minister said: "Show me the alternative." Stock markets in every State fell yesterday, and showed an unfavourable reaction." The capital values of some stocks sank to new low levels. Dispatches from London state that the "Financial Times" is greatly hopeful that nothing will occur in the industrial sphere in Australia to derange the revenue yield. Appreciation of the lieavy burden of taxation will find quick expression in London. A loan is necessary to stabilise the position and it may be regarded under the present conditions as not extravagance, but as necessary to "ive the Commonwealth a financial buttress for the essential fructification of its plans. The "Daily News and Chronicle" confines its remarks to comment upon the value of protection. In fact, it says, Australia is reduced to a desperate expedient such as a sales tax after years of energetically protecting herself. "STAGGERING BLOW." Federal Taxation Effect on Trade and Industry.

BITTER PROTESTS. SYDNEY, July 10. The Federal Government's new taxation and revenue duties have dealt a staggering blow to trade and industry. Leaders of commerce all declare that the new imposts must be passed on to the public, further increasing the cost of living and intensifying unemployment. Share values slumped sharply on the Sydney Stock Exchange to-day, sellers lowering their limits drastically in an endeavour to realise. The anxiety to sell appeared to be genuine. Buyers, however, wanted big concessions. For example, brewery shares fell by from 6d to 1/9. Trading and industrial shares receded most heavily and touched the lowest levels for many years. Bank of New South Wales shares fell 5/ to £37 15/ and Commercial Bank of Sydney 4/ to £19 15/. The market for gilt-edged stocks was extremely quiet, sellers having to face small losses. Motion picture distributors declare that the taxation of their industry has reached the breaking point. The _ extra penny a foot on film means an additional £112,000 a year. A. leading accountant says the direct and indirect Federal taxation for the current year amounts to more than ,£59,000,000. Reports from all the States contain most bitter protests against the taxation proposals and the dire effects these are likely to have upon the trading communities. The Minister of Customs, Mr. J. E. Fenton, says the new Customs and excise duties will not affect any goods the produce or manufacture of New Zealand. An agitation has been begun in Adelaide and Brisbane for a united business men's organisation to frustrate the Federal Government's attempt to enforce the taxation measures, which, according to one manufacturer, ar-e likely to put lalf the wholesale firms 'in Australia out of business.

The sharemarket at Melbourne slumped slarply to-day.