PREMIERS DECIDE ON LOAN.

Press, Volume LXVI, Issue 20084, 13 November 1930, Page 11

PREMIERS DECIDE ON LOAN.

—♦ MEETING AT CANBERRA.

MR LANG'S MOTION LOST.

(UNITED PRlaj ASSOCIATION—BT EMTCTJtIC TELBORAPU— COI'VKIQHT.)

CANBERRA, November 12. he official report of the Loan Council meeting states that the Council ra i s ' n g of loans for i.-CS,OOU t OOO, £IB,6OO,QQU for the Commonwealth and £11,400,000 for all the btates. i J ' , T " Lan S (New South Wales) V' ns , t ' le Council failed o provide lor the carrying on of pubUo works in New South YVaLxi the states should be allowed to borrow lor thoinsel ves. ■^ r k. L. Hill (South Australia) moved an amendment that it was not constitutionally possible to agree to C, ni, K 3 'notion. Mr Hill's amendment was carried. A Dramatic Feature, A dramatic feature of the meeting bang's agreement to the plans ot ivlr J. A. Lyons, Federal Treasurer, conversion ion, of £28,000,UH) at 6 per cent., for two years, 5^ Tl eai '?'. J Uid uj for 20 years, ii i was unanimous, although Mr Lang, in the early discussion, expressed a desire to withdraw liom the Council, taking with him his snare of the loan, approximately £4,000,000. His motion that all future ,9 a '? s should be subject to State and federal income tax was defeated by six votes to one.

It was explained that the purpose of the two years' quotation at 6 per cent, lor the loan was to «nablo advantago to be taken of some American capital now tied up in Australia, owing to the exchange rates. Mr Lang, in desiring to withdraw from the Council, stressed the point that he received a mandate from the people of New South Wales to pursue an independent course. He contended •that it wns now obvious that the Loan Council was no longer able to give New South Wales the money it needed. He therefore should bo given permission to arrange his own loans. Unemployment distress was serious in his State, and this justified an attempt to taltp the quickest and most effective means to afford relief. If permission were refused that would not affect the determination of his Government to raise money 'Tidepcntlentl.v.

Amendment Carried. Ihis statement was received by members of the Council with considerable feeling. Mr \V «. Rarnes, the Queensland 1 reasuj-er, said Mr Lang's request should be resisted, mainly because, while New South Wales might benefit other States would sutler. Mr Lyons declared that the Loan Council in the present circumstances was a national necessity. Its past inability to secure sufficient funds was not due to any fault of the Council, but to lack of money. Mr .Hill, opposing; Mr Lang's motion tor his State's withdrawal, moved an amendment that tho committee had no power to agree to that course constituancl this was carried, Ihe Council decided that the question of imposing State taxation on the interest from all Commonwealth loans raised alt«r July Ist, 1931, be discussed at next meeting, any action taken not to apply to tho present conversion loan.

It is stated that at a late hour New South Wales had withdrawn from the Melbourne financial Agreement branding Committee.

[lt was Mr Anstcy's motion, approved by tho Labour Caucus, which caused tho recent stir, and led to the Federal Treasurer's threat to resign. Tho motion demanded the immediate passage of legislation compelling bondholders in the £27,000,000 loan to hold their bonds for a further twelve months, the interest to be paid as usual, with the proviso that necessitous persons might receive immediate payment of small amounts from the Commonwealth Bank, which would then hold these cashed bonds as non-interest-bearing securities.]

MR SCULLIN PLEASED.

LONDON, November 11, Mr J. H. Scullin, Prime Minister of Australia, in a statement said: "The decision of the Loan Council to proceed with the conversion loan on Mr Lyons's terms will be well received in London, and will react to Australia's advantage. ''l spoke to Mr Lyons to-day. He said that he was very glad to hear my voice, as I was to hear his. He is carrying a heavy responsibility, but is facing the task manfully." REPUDIATION TALK. LABOUR PARTY DISSOCIATES ITSELF.

(Received November 12th, 10 p.m.)

CANBERRA, November 12. Tho Labour Caucus met briefly to-

An official report of the meeting stated that a motion was unanimously carried denying any association with a repudiation of obligations, and declaring the intention of tho Party faithfully to dipcharge all lawful commitments. The motion to ro-commit the Hon. Prank Anstey's motion, instructing the Government to legislate to defer the payment to bondholders for twelve months, was not moved. The position now is that Mr Anstey's motion remains uncancelled, but no action will be taken regarding it.

MANUFACTURERS MEET MR SCULLIN.

PREFERENCE GESTURE SOUGHT.

LONDON, November 11. That Australian wool was treated as foreign in assessing the proportion of British material entitling British woollen goods to preference was the bitter complaint of a manufacturers' deputation to Mr J. H. Scullin, who replied that Australia was so anxious to help Great Britain that she penalised her own products. This was one of several anomalies which it was proposed to, remove. Mr Scullin em phasised that the woollen industry was natural to Australia, which could not continue sending wool 12,000 miles and importing goods made therefrom. Two hundred and fifty manufacturers, representatives of the British Trade Association, were introduced by Sir Arthur Balfour. Mr Scullin urged the industrialists of Australia and Great Britain to consult and discuss whether specific lines should be reserved for manufacture in either country. He did not claim that the Australian tariff was perfect. A wool manufacturer interjected: Australia is building up non-economic industries. "In that,case they are bound to fail. You -will enter again," said Mr Scullin,

who claimed that preferential tariffs were the principal, though not the only, method of promoting inter-Impe-rial trade.' Some Australian industries did not produce all the varieties of goods required. He suggested that _in such cases certain markets or a portion of the markets should be allocated to manufacturers in different parts of the Empire. Faith in Australia. Sir Arthur Balfour said: ."It seems to us there is room for a little more help in regard to preference. "We send money to Australia for goods, and Australia sends this money to the United States. If Mr Scullin can make any . preference gesture it will make it easier for the Commonwealth to borrow a little more money i'rom Great Britain. "The moment is extremely opportune. We can show faith in Australia by not withdrawing money over-quickly. 1 proclaim my faith in Australia, and will back it to the limit."