IN DANGER.

Auckland Star, Volume LXI, Issue 210, 5 September 1930, Page 7

IN DANGER.

FEDERAL MINISTRY.

Labour Divided on Method of

Balancing Budget.

ANTAGONISM TO WAGES CUT,

(United P.A.—Electric Telegraph—Copyright)

(Received 11.30 a.m.)

SYDNEY, this day.

The "Sydney Morning Herald" says that unless members of the Cabinet are prepared to give an undertaking that they 17111 not reduce public servants , salaries, Federal members representing New South Wales constituencies will move at the next meeting of caucus for a reconstruction in the Ministry.

The New South Wales branch of the Australian Labour party has definitely ranged itself behind the Federal Ministers who oppose balancing the Budget by a reduction of the salaries of public servants. The branch is looking to the Federal Parliamentary Labour party to devise means of meeting the country's obligations other than by a reduction of workers' wages.

The Minister of Health, . Mr. P. Anstey, one of the strongest men in the Cabinet and Labour party, stated yesterday that the meeting of the Cabinet will to be held in Melbourne would be a trial of strength between the t\jo sections of the Ministry. The outcome was "in the lap of the gods."

Reports from Canberra indicate that the dissenting section of the Cabinet disI trusts the ability of the acting-Prime Minister, Mr. J. E. Feriton, to carry the Government through the stormy times j looming ahead. Acting-Premier's Hint. Mr. Fenton hints that the Ministry is inclined to act upon the suggestion Of the council of the Australian Trades '• Union and convene a conference of representatives of the Government, industrial and employers' and the assoeiated banks to ebn&ider deductions in juices, wages and interest, and a also to iilcre&se the Federal iftcOirie tax. i In an interview prior to his departure for ft ew Zealand Sir Otto Ni6mey6r assured the people of Australia that he was not here as an official receiver. He 3 said no time should be lost in giving 1 effect to the decisions of the Premiers' 2 Conference. He saw a great chance of „ young Australians, imbued with the true " civic spirit and requisite intelligence, grappling with their problems, for never was the position of Australia so interest- - ing. 1 The settlement of the war debt had been favourable to Australia. The rate i of interest was about £4 18/, which was j considerably less than the British taxi payer was- paying. Consequently there I was no foundation at all for the common r belief that Australia was not so well treated as other Dominions.

The settlement of the war debt had been favourable to Australia. The rate of interest was about £4 18/, which was considerably less than the- British taxpayer was- paying. Consequently there was no foundation at all for the common belief that Australia was not so well treated as other Dominions. '.■

Sir Otto said he did not think Australia's -position could be retrieved by further taxation. The chjef remedy was to reduce costs. He saw little hope of easier interest rates on future conversions, as."Australia herself had forced them up to their present level. , Issue at N.S.W. Elections.

The. main issue to be decided by the electors at the New Sou f h Wales general election on October 25 is the Government's advocacy of the financial psrreement drafted at the recent •niers' Cdnference. The Labour party

oppose the ratification and will also

ose a repudiation of the Common..ealth's debts abroad." However, the party will advocate a review of the Commonwealth's debts so far as interest rates are concerned. /

Investment stocks on the Sydney Exchange reached the lowest levels recorded since the depression began. Generally the prices are down almost to the levels ruling during the after war depression of 1921. .

A spectacular, dash is being n.ade by tho Federal Minister of Defence, Mr. Green, to attend the Cabinet meeting at Melbourne to-day. Mr. Green was at Wyridham when the meeting was called, and he is. making a .t'ash across the continent by aeroplane via Pertih and Adelaide. He hopes to reach Melbourne in time.

"SMOKE SCREEN."

Sir 0. Niemeyer's Diagnosis

Challenged.

AS MR. W. M. HUGHES VIEWS IT.

(Received 1 p.m.) . SYDNEY, this day. Mr. W. M. Hughes, ex-Prime Minister of Australia and Leader of the Nationalist party, to Sir Otto Niemeyer's report, says that while agreeing that the Budget must be balanced, this should apply all round. He expressed the opinion that Sir Otto's talk about Australia's debts was only a smoke screen designed to induce a radical change in the national policy and to stampede the people into a compound in .which the interests represented by Sir Otto desired to intern them. The acceptance of the policy suggested by Sir Otto would only result in stagnation arid despair.

BANKS , POSITION.

REPLY TO LABOUR,

MELBOURNE. September 4,

Mr. C. N. Tranter, chairman of the Associated Banks, commented to-day on the suggestion of Mr. Duggan, president of the Australian Council of Trades Unions, and other Labour leaders that the banks should reduce the rates of interest on overdrafts, mortgages and deposits. He said if that were done the banks would automatically fail and in turn bring down a lot of working. class people. . ; ; It was a , great tribute to the stability of the banks that they could retain their deposits in the face of open, competition for money.- Nothing but an improvement in trade could bring down the rates of interest. The Melbourne Board of Works .to-day was. offering £6 5/ per cent foi*: a 10-year loan and on the Stock Exchange gilt-edged stocks were showing a return of £0 4/10 per cent per annum. . • On the other hand, the banks were paying only £4 10/ per.cent per.'annum for short-date'd. deposits,, and f5 5/ for two years or longer.