THE AUSTRALIAN CRISIS.

Press, Volume LXVI, Issue 20026, 6 September 1930, Page 15

THE AUSTRALIAN CRISIS.

MOMENTOUS CABINET MEETING. PROPOSALS ARE SUBMITTED. (TOITBD PKK3S ASSOCIATION —B* ELECTHIO TBLEQBAPH—COJTBMHT.) (R-eceived September 6th, 12.50 a.m.) MELBOURNE, September o. At a momentous meeting of the Federal Cabinet to devise methods of meeting the probable £9,000,000 deficit at the end of the financial y ei ""> it is understood that Mr Lyons, the Acting-Treasurer, submitted proposals for a reduction of Ministerial, Parliamentary, and Public Service salaries, ranging from fifteen per cent, on the higher salaries, to ten per cent, on the lower, increased taxation on higher private incomes, and also a tax on the interest applicable to Commonwealth bonds. Cabinet was sitting late to-niglit, and possibly the meeting will last over the week-end. ■ Sir Robert Gibson, chairman of the Commonwealth Bank, and the directors attended to-day at the urgent request of the Acting-Prime_ Minister in order to explain the serious position of the finances, and to convince Mr Fenton's colleagues of the absolute need for immediate drastic action to stop the drift. ACROSS A CONTINENT. SYDNEY. September 5. A spectacular dash is being made bv the Federal Minister for Defence, Mr Green, to attend the Cabinet meeting at Melbourne to-day. Mr Green was at Wyndham vjien the meeting was called and he is making a dash across the Continent by aeroplane, via Perth and Adelaide. He hopes to reach Melbourne in time. PUBLIC SERVICE ECONOMIES. MELBOURNE, September 5. The Acting-Prime Minister, Mr Lyons, is submitting to his colleagues, as an inevitable step in the economies in Government expenditure, a plan for a reduction of Public Service salaries, probably by 10 or 12$ per cent. MR SCULLIN'S HEALTH. LONDON, September 4. A message from Colombo states that the Australian Prime Minister (Mr J. H. Scullin) is making excellent progress find is expected to be completely recovered in a weeK.