DAMAGE TO CREDIT

Evening Post, Volume CXI, Issue 35, 11 February 1931, Page 9

DAMAGE TO CREDIT

BLAZING INDISCRETION

LANG ROUNDLY .CONDEMNED

LONDON, 10th February. The "Daily Telegraph's" city editor says that Mr. J. T. Lang's blazing indiscretion has cost Australia dearly. To-day Commonwealth State stocks became well-night unsaleable. The damage to Australia's credit, which will become obvious later in the demand for exchange through the flight of capital, cannot be calculated. AYhat is wanted to restore confidence is a prompt balancing of budgets. {Every day's delay makes it more difficult, to reach equilibrium. The Commonwealth has £5,000,000 in bills maturing on 2nd March. The position, which is serious, enough, will become desperate unless stronger measures are taken. The "Morning Post's" financial editor says that if Mi1. Lang had his way lie apparently would go for wholesale repudiation and pure inflation of eurrenevv. Mr. J. H. Scullin and Mr. E. G. Theodore, while repudiating Mr. Lang's ideas, seemingly are attracted by a policy involving some measure of inflation because, it might stimulate industry artificially, thus improving the yield of Government taxes. Such a result could benefit the position only temporarily, while the illeffects would bo lasting, and would, in fact, lead -to disaster. It was to be hoped that, as a result of conversations with the Commonwealth Bank, wiser counsels would prevail. A drastic curtailment of expenditure alone would lead to the restoration of confidence in Australian

finances,