AUSTRALIA’S TROUBLES

Evening Star, Issue 20779, 29 April 1931, Page 9

AUSTRALIA’S TROUBLES

SHIPMENT OF GOLD TO LONDON MR SCULLIN'S APPEAL Press Association —By Telegraph—Copyright. CANBERRA, April 28. In the House of Representatives; during a debate in the committee stages on the Commonwealth Bank Bill, which authorises the shipment of gold to London to meet urgent obligations, the Prime Minister appealed to the Opposition for co-operation in surmounting .tho present crisis. He said that the Government would be prepared to abandon the fiduciary issue or any other plank in its policy if the Opposition could show a better way out of the national difficulties. He claimed that the gold in the bank here was earning nothing, and it would save interest and heavy exchange if Parliament would agree to the shipment of £5,000,000 worth. Mr Latham replied that the removal of the gold reserve would inflict permanent financial disabilities. The remedy was radical reconstruction of the national economic and financial fabric. Semi-official sources explain that if a furthor £5,000,000 of gold is shipped the reserve would be reduced to £10,000,000, which would be sufficient under existing legislation to back a note- issue of not more than £40,000,000. The present note issue ia about £47,000,000. THIRD READIHG PASSED CANBERRA, April 29. (Received April 29, at 10 a.m.) The committee stages of the Commonwealth Bank Amendment Bill were completed, and the third reading was carried on the voices. It is expected that the Bill will be submitted to the Senate during the week. The Lang group urged an unlimited note issue, but the Opposition forces combined with the Government in defeating the amendment to this effect by 49 votes to 3. NEW SOUTH WALES SAVIHGS BANK , BILL BEFORE ASSEMBLY. " SYDNEY, April 28. Following the suspension of the payment by the Government Savings Bank of New South Wales, the Premier and Treasurer ' (Mr J. T.-Lang), in the Assembly to-day, introduced a Bill entitled the Government Savings Bank Amendment Bill, authorising the transfer of the Government Savings Bank business to the Commonwealth Bank in accordance with the summarised terms laid down by the latter institution. Every part of the Assembly was crowded in the expectation that there would be a bitter attack upon Mr Lang. The provisions of the Bill authorise the Commonwealth Bank to make payments to depositors in the Government Savings Bank " only in such cases and upon such terms as the Commonwealth Bank may stipulate," while a moratorium clause suspends the rights of depositors for a maximum period from April 23 to December 31, or such further period as may be proclaimed by the Governor. No depositor or customer of the Government Savings Bank may sue either that bank or the Crown for non-payment of any deposit within the period prescribed by the moratorium, or bring an action in respect to dishonour by the bank of any cheque or draft. The Government ]of New South Wales agrees to guarantee the Commonwealth Bank against all loss arising out of advances made on behalf of the Savings Bank, and the Treasurer and " the commissioners r are empowered to arrange for the transfer of the • whole or a part of the Savings Bank to the Commonwealth Bank. Speaking to the second reading of the Bill, Mr Lang declared that certain members of the Opposition destroyed the Government Savings Bank in tho hope that it would bring about tho Government's downfall. Ho went on to relate incidents which led to tho run on the bank's funds, and its suspension of payment. " There are men in this House," he shoutod, " who deliberately brought about tho downfall of this grand institution." Mr Foster (Nat.): You brought it down without a doubt.--(Opposition cheers.) Mr Lang: All I ask now is that members should curb their poisonous tongues, so that the amalgamation negotiations may be continued to a successful issue. Then at an early date they may have a chance of making whatever defence they can for their shameful, traitorous conduct. Mr Stevens (who acted as DeputyLeader of the Opposition in tho absence of Mr Bavin, who was attending his mother's funeral) said that the excess of withdrawals over deposits in tho Government Bank between July, 1930, and the.date when the bank was closed approximated £16,000,000, and when payments were suspended it had practically no cash in hand. On the other hand, the Government of this State held more than £7,000,000 of the bank's deposit moneys, but the Government had been unable to raise one penny to meet its obligations to the

bank because of the widespread discredit it had brought upon the State by its dishonest repudiation policy. " The failure of this bank is definitely and solely traceable to the Lang Government," said Mr Stevens. " The most serious run on the bank's funds occurred after Mr Lang's default to British bondholders on March 27, and after his statement to the Easter Labour Conference concerning tho socialisation of industry and finance." BILL PASSES ALL STAGES SYDNEY, April 29. (Received April 29, at 10 a.m.) No opposition was offered during the passage of the Government Savings Bank Amendment Bill in the Legislative Council, which was carried through all its stages on the voices and sent to tho Governor for his assent. MR LANG ANSWERS QUESTIONS SYDNEY, April 28. Tho Bank Bill was read a second time. While the Bill was in the committee stages Mr Stevens asked the Premier whether any arrangement was being made to absorb tho Government Savings Bank employees. Mr Lang replied that the matter would bo considered when amalgamation was being discussed. Mr Stevens also asked whether depositors would receive an assurance that they would receive tho whole of their money from the Government Savings Bank. | Mr Lang replied that the whole of I the deposits would be paid in full beI cause the bank was backed by the State j of Now South Wales. I The Bill passed all stages without : amendment. [A summary of the proposals put forward by the Commonwealth Bank Board for affording temporary relief to Government Savings BanK depositors in necessitous circumstances is:— That the New South Wales Government Savings Bank shall hypothecate to the Commonwealth Bank such securities as the latter may require to cover such advances as may be made to depositors. . That the Commonwealth Bank shall be expressly made a preferential creditor in respect to such advances'. That, upon tho production of depositors' passbooks to the Government Savings Bank, all sums paid to depositors, together with interest and other charges, will bo repaid to tho Commonwealth Bank. That the Now South Wales Government shall guarantee all advances so made on behalf of tho State Savings Bank.]

EMPTY TREASURY EARLY ELECTION INDICATED. SYDNEY, April 28. A significant statement made by Mr Lang in the Assembly to-day is interpreted by the Opposition as indicating that there will bo an early election in New South "Wales. The Premier, at the end of liis speech on the Government I Savings Bank Bill, said that at an ] early date " the Opposition members may have a chance at the bar of public opinion of making whatever defence they can for their shameful, traitorous conduct." » Opposition members assert that it will be quite impossible for the Lang Government to carry on much longer owing to the empty Treasury and its inability to raise a loan or to increase taxation. INTEREST PAYMENTS ANOTHER DEFAULT. SYDNEY, April 28. Mr Scullin announced to-night that the New South Wales Government would default by £1,500,000 of interest payments on May 1. Mr Tang had informed him that tho most that the State Government could find by that date was £38,000. Mr Scullin added that the Commonwealth would therefore have to foot the bill for tho remainder. STOCK EXCHANGE QUIET COMMONWEALTH BONDS WEAK. SYDNEY, Apfil 28. Tho Stock Exchange had a rather subdued tone, and Commonwealth bonds continued to weaken, particularly short-dated issues, reflecting uncertainty concerning the immediate political and financial outlook. A noticeably strong demand rules for New Zealand Government stocks, but advanced offers fail to bring out sellers. Fairly good support exists for bank shares, but the better class of industrial shares continue to display weakness, due to tho unsettled outlook. REFUSAL TO PAY LEVY INSTALMENT MINERS COME OUT ON STRIKE. SYDNEY, April 29. (Received April 29, at 10 a.m.) The refusal of a miner to pay sixpence as an instalment towards a 3s levy struck by tho Miners' Lodge for the expenses of the May Day celebrations has thrown the Stockton Bore Hole colliery idle for an indefinite period. Four hundred strikers decidod not to work with tho man concerned. SEAMEN'S UNION GENERAL STRIKE MOTION DEFEATED. SYDNEY, April 29. (Received April 29, at 10 a.m.) What is probably the largest meeting of the Seamen's Union ever held in Sydney defeated a motion aiming at a general strike. Determined efforts were made by avowed Communists to have tho striko motion carried, but when the genuine seamen saw some of the so-called manners who wanted tho ships tied up and who had never been to sea in their lives, that settled the matter.:

IMPORTS AND EXPORTS A FAVOURABLE BALANCE. ADELAIDE, April 29. (Received April 29, at 8.30 a.m.) Addressing a meeting of business people, Mr Theodore (Federal Treasurer) said that in tho year before the Federal Government camo into office tho imports totalled £153,000,000, but this year they aggregated £72,000,000. The exports this year would reach £89,000,000, leaving a favourable trade balance of £17,000,000. "He claimed that tho Government had effected economies in administration since coming into office totalling £4,000,000. He said it was proposed to introduce legislation for basing tho values of imports on Australian currency. Mr Theodore said that if tho causes of depression continued indefinitely Australia was goin? inovitably to utter ruin, but reliable opinion had been expressed that tho bottom of tho depression had been touched, and there would be an improvement in the prices of the Commonwealth's products.