EXTREMIST TALK.

Auckland Star, Volume LXI, Issue 212, 8 September 1930, Page 7

EXTREMIST TALK.

MR. HUGHES REBUKED.

Australia's Efforts to Balance

Her Budget

NON-PARTY PROGRAMME.

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

(Received 10.30 a.m.)

MELBOURNE, this day. The Federal Cabinet concluded its meeting on Saturday afternoon with a complete agreement on the supreme necessity of balancing the Budget.

It was stated that the only alternative to increased unemployment was a national non-party programme, behind which the whole community could rally.

It is believed that the Government, in collaboration with tin bankers and leaders in industry, will take early steps to restore the pound sterling zo something like its real value, thus giving greater purchasing power to the reduced earning capacity of the wage earner. It is stated by prominent Federal Ministers that any ieduction of public service salaries mutt be rellected throughout the community. The Government Mill not start relief works of any kind. Instead, industry will be assisted to absorb unemployed by giving the employers facilities and possibly financial hei]) to do so.

It is unlikely that Parliament will meet until the first week in November.

A Cabinet sub-committee will confer with representatives of the employers and employees. Several economies will be enforced in the Commonwealth administration, while taxation on sheltered incomes will be further explored.

Commenting on Australia's finances the financial editor of the "Morning Post" says: "The investor in Australian stocks may perhaps be excused for being rather sensitive in the matter. At all events, the effect of the extremist talk was at first slightly to affect the rate .it which the last Commonwealth bills were sold and later to occasion a reaction in Australian securities.

"This reaction was accentuated on Friday by the wild statements of the former Prime Minister, Mr. W. M. Hughes, in a Sydney daily newspaper, that the recommendations of Sir Otto Niemeyer were a mere smoke screen to deceive the people of Australia. In the opinion of the city, Mr. Hughes' speech was a very unfortunate one, giving Britain little credit for a genuine desire to aid Australia ir. her present difficulties."

The writer adds: "It must be remembered that these reactionary speeches do not emanate from the quarters which arc responsible for framing and supporting the resolutions agreed upon by the Federal and State Governments. There is no reason to suppose that Australia as a whole is not behind the spirit of the resolutions and that she does not appreciate the points which have been brought out, very strikingly and faithfully, by Sir Otto Niemeyer.

"For m; ny years Australia obtained loans in London on terms which would have been quite impossible,, had they not enjoyed the rank of trustee investments. That is a privilege which carries with it a great responsibility on the part of the debtor. It is a responsibility which undoubtedly the Australian people will be the first to recognise."

RUTHLESS ECONOMY.

NO CAUSE FOR DESPAIR

(Received 11.30 a.m.) MELBOURNE, this day. Referring to the present financial trouble, the acting-Federal Treasurer, Mr. Lyons, said: "We are combing out our extraneous items of expenditure with a fine-toothed comb. The most ruthless course is being taken with a viewto limiting waste and duplication, and all that is not strictly essential is to-go. The position is almost desperate, although not so desperate as to call for despair.'' 3

UNSTABLE STOCKS

INVESTORS SCARED

SYDNEY, September 7.

Investment business on the Stock Exchanges in Sydney and Melbourne is infinitesimal. The '"bears" have adopted the slogan "Sell everything,"' and many investments are dirt cheap, while capital security is equally as sound as it was a year ago. The inability to establish a stable level of prices has scared investors, who have withdrawn from the market until the outlook is brighter. Brewery and gas shares touched (he lowest level for years.