OPTIMISM IN AUSTRALIA

Press, Volume LXIX, Issue 20979, 6 October 1933, Page 11

OPTIMISM IN AUSTRALIA

Confidence Increased by Budget FURTHER RELIEF THOUGHT POSSIBLE (UKITJ6D MESS ASSOCIATION—BY ZLECTEIC TXLSGSAPH—COPTSIOHT.) (Received October 5, 11.20 p.m.) SYDNEY, October 5. There was a general feeling of optimism in business circles to-day, and the consensus of opinion was that new life and spirit had been given to commerce and industry by the budget. Company taxation is being reduced from 16.8 d to Is in the pound, which it is believed will stimulate employment. It is also reported that substantial reductions in interest rates by banks and insurance companies can be expected in the next few days. The Government is of the opinion that the budget will provide a stimulus to business which will result in higher revenues, and that there will be still further relief from tax burdens before the year is out.

REDUCTION IN INTEREST INSURANCE SOCIETY'S ANNOUNCEMENT (Received October 5, 11.55 p.m.) SYDNEY, October 5. The Australian Mutual Provident Society announced to-night a reduction of interest to 4J per cent, to Australian borrowers. FALLING UNEMPLOYMENT FIGURES CREDIT HIGHER IN ENGLAND CANBERRA, October 5. In his budget speech, Mr J, A. Lyons (Prime Minister and Treasurer) stated that there had been a progressive reduction of unemployment from 30 per cent, in the second quarter of 1932 to 25 per cent, in the second quarter of 1933. Speaking on the improvement in Australia's credit, Mr Lyons said the latest advices from London showed that Commonwealth 5 per cents, are quoted at a higher rate than New Zealand 5 per cents., while Commonwealth 4 per cents, are quoted higher than Canadian 4 per cents.

[BUDGET'S RECEPTION ! IN ENGLAND CRITICS PLEASED CONGRATULATIONS FOR MR LYONS (Received October 5, 9.10 p.m.) LONDON, October 5. The Commonwealth budget is the leading feature in most of the morning newspapers. Long reports are displayed under triple double-col-umn headlines. The top line in the "Daily Telegraph" reads: "Australia's big gift to British trade." The heading in the "Daily Express" is: "Dramatic gesture for Empire trade." The newspaper directs attention to the reduction of some duties by more than half. "The Times" says the budget is the nearest approximation to a prosperity budget yet seen anywhere since the beginning of the depression.

The city editor of the "DailyMail" says that Australian loan holders and British manufacturers will be pleased with the sound and cheering budget. The bold tax-cutting has remarkably demonstrated the great financial recovery of Australia, especially since the rise in wool. Thus, from being one of the first to suffer from the economic blizzard, Australia is now in the forefront in substantially reducing taxation, which is so desirable everywhere. The "News-Chronicle," emphasising that the budget has firmed Australian stocks, congratulates Australia and Mr Lyons. It recalls ihat Australia's collapse heralded the crisis and hopes that the budget will herald a much more desirable phase. The "Daily Telegraph" says that the Commonwealth budget is the most heartening for many years. The sharp advance m Australia's export values clearly induced Mr Lyons to frame his proposals on optimistic lines.