STATE DEBTS

Evening Star, Issue 20780, 30 April 1931, Page 11

STATE DEBTS

NEW SOUTH WALES THE INTEREST PAYMENTS Press Association—By Telegraph—Copyright. CANBERRA, April 29. The New South Wales interest default applies to private bondholders in London and New York. The sum of £38,000, which was all that the State was able to find, was to meet interest due on certain debentures owned by the Commonwealth Bank. Mr Scullin says that a statement of the amounts owing by New South Wales to the Commonwealth up to and Including May 1, after offsetting payments due from the Commonwealth to the State, shows the latter’s indebtedness to the Ecderal Treasury to be £1,590,084.

DISCUSSION IN STATE ASSEMBLY LABOUR MEMBER CRITICISES GOVERNMENT. SYDNEY, April 30. (Received April 30, at 9.25 a.in.) Supply for the month of May amounting to £2,648,800 was sought by the Government in the Assembly. It was intimated that the Budget for the year was expected to bo ready shortly. The Premier (Mr Lang) expressed the opinion that New Smith Wales will soon be experiencing a prosperous period. Mr Lang reiterated his intention of seeking a reduction of interest rates. There was consternation in the Assembly when Mr Kelly (Labour member for Bathurst) criticised his Government for its withdrawal from the Loan Council. “I say to my party that I would not have any hesitation about joining the Loan Council at the earliest moment. I do not sec any sound reason for keeping out.” Mr Kelly continued that the time had arrived for plain speaking. If the present rate of Government expenditure was continued there must be a smash. Serious consideration 'must bo given to the heavy burden that it imposed. He suggested an. inquiry into the payment of high salaries to public officials, many of whom, ho asserted, wore not earning their pay.Mr Stevens (acting Opposition Leader) declared that Mr Lang should tell the people whether he proposed to continue his policy of repudiation. Ho said the apparent saving by default in interest and other payments to the end of the financial year would be £4,322,100.

ALLEGIANCE TO MR LANG STATE LABOUR PARTY’S ULTIMATUM. SYDNEY, April 30. (Received April 30, at 10 a.m.) Rigid rules for enforcing allegiance to tho Premier (Mr Lang) and the State Australian Labour Party Executive have been drafted for circulation among the members of the Legislative Assembly,' the Legislative Council, and municipal bodies. Special pledges have been prepared demanding unswerving loyalty to the Lang plan and Lang legislation generally. Members will be directed to sign three pledges and to return them to the A.L.P. office. If they refuse to do so they will not be regarded as Labour supporters, and their endorsements will bo withdrawn. It is considered likely that those who are supporting the Federal Labour Party will refuse to sign the pledge, GOVERNMENT SAVINGS BANK PAYMENTS TO DEPOSITORS LIMITED. SYDNEY, April 29. An official statement has been issued concerning payments to depositors in tho Government Savings Bank. A limit of £3 is placed on tho amount that may bo withdrawn in ono week, and the depositor must establish tho fact that ho or she is in dire necessity. Depositors whose needs are not urgent are asked to delay their applications until after the necessitous cases have been dealt with.

EFFECT OF LANG PLAN DECLARATION BY FEDERAL LABOUR CAUCUS. SYDNEY, April 29. The Federal Labour Caucus lias issued a statement declaring that the failure of the State Savings Bank was the inevitable repercussion of the Lang plan, which was responsible for 2,00 U men and women losing their employment, while many thrifty workers who had their life's savings in the Government Bank were now forced to apply for the dole. NOT LIKELY STATE GENERAL ELECTION. SYDNEY, April 29. Political Labour circles scout the Opposition suggestion that a State general election is imminent. Members of the Ministry declare that Mr, Lang’s remark during the Bank Bill speech about the “ bar of public opinion ” referred to possible State by-elections resulting from members of the Assembly contesting Federal feats, INCOME TAX PAYMENTS NEW 'METHOD PROPOSED. SYDNEY, April 30, (Received April 3U, at noon.) Replying to a question in the Assembly, Mr Lang said ho hoped soon to introduce an amendment whereby income tax will be payable as earned..

Thus the burden will not be allowed to accumulate over a period of twelve months, causing hardship, as is often the case now. MR LANG IN PRIVATE BUSINESS NATIONALIST MEMBER’S STATEMENT. SYDNEY, April 29. Quoting from an official deposition which was taken at a lire inquest in the Premier’s electorate, Mr Foster, a Nationalist member of the Legislative Assembly, claimed that the firm of Lang and Dawes, estate agents, of which the Premier is a partner, had charged a woman who purchased a property 13 per cent, interest on a mortgage. Mr Foster said that Mr Lang was ever ready to accuse other people of usury, himself posing'as a Simon Pure, and always describing landlords and money-lenders as ogres who were battening on the working people, yet in the capacity of a mortgagee he was one of tho greatest of “ wowsers.” “If the Premier does not face the House in an attempt to disprove the statement, I shall ask my lawyers to investigate tho allegation,” said Mr Foster. MELBOURNE STOCK EXCHANGE SYDNEY, April '3O. On tho Stocic Exchange in Melbourne Commonwealth securities all declined to-day from 2s Gd to 27s Od, duo to the announcement of New South Wales’s further default and to a lack fo confidence in tho Federal Government’s financial policy. THE FINANCIAL OUTLOOK ,MR THEODORE’S DECLARATION. MELBOURNE, April 29. Speaking at Ballarat, the Federal Treasurer (Mr Theodore) held out no hope of Australia meeting her overseas obligations except by an increase in commodity prices or an extension of long term credits abroad. “We cannot carry on without these conditions,” ha said. “ There has been a coolness overseas towards Australia for a long time. There is no reason why. our 5 per cent, loan is at £7O, while that of Now Zealand is at £9B, and of South Africa at £IOO. This must be duo to a series of misunderstandings. The blame cannot be all with one party, and wo must cease rancorous fighting ,and try to brush these misunderstandings away.” LONDON FINANCIAL JOURNAL’S COMMENT LONDON, April 29. Australia is again figuring prominently in the Press in connection with the proposed gold shipment, and the news of another New South Wales default. Tho ‘Financial News' says: “ London banking circles are of the opinion that. Mr, Scullin’s proposal about the gold shipment is thoroughly undesirable, as tho abolition of tho gold backing would do further damage to waning credit, and would bo a serious obstacle to tho restoration of confidence. It would remove tho last vestiges of the gold standard and make a return to the system extremely difficult. It it is true that tho only alternative is default, the use of the gold reserve may bo tho lessor evil, for after all the gold reserve is primarily accumulated for use iu emergency, and tho possibility of arranging for funding or the replacement of maturing Treasury bills seems at present remote. The Senate therefore may find it necessary to pass tho Bill unless tho Commonwealth Bank can again find tho money.”

GOVERNOR OF VICTORIA DEPARTURE FROM PRECEDENT. SYDNEY, April 30. (Received April 30, at 10 a.m.) Tbo ‘ Daily Telegraph’s ’ Melbourne correspondent says: “Lord Somers (Governor of Victoria) surprised his audience at the Gippsland Shires Conference by departing from the traditional Vice-Regal reserve and offering comment on politics and finance. Though he did not actually name the Premier of Now South Wales, his criticism could bo directed at no other politician. His Excellency' s said there was money waiting for outlet but who was going to lend money to a man who says: ‘I don’t think I shall be able to pay you bade. There is one man who has said this,’ ” MR SCULLIN AND MR BEASLEY HEATED 'DISPUTE IN HOUSE. CANBERRA, April 30. (Received April 30, at 10 a.m.) A dispute between Mr Scullin and his former lieutenant, Mr Beasley, now leader of the Lang group, occurred in the House of Representatives, and there were charges of lying. Mr.Seullin, in the course of a statement, said that Sir Robert Gibson’s reappointment to the Commonwealth Bank Board was by the unanimous consent of the Cabinet. Mr Anstcy declared that ho had objected to the reappointment and put a protest in writing so that there would bo no mistake. Mr Beasley said lie was wrongly represented by the Prime Minister. The reappointment was not unanimous, and ho had not supported it. Mr Bayley asked Mr, Scullin whether, in view of the statements of Mr Beas-, ley and Mr Anstey ho had any explanation to make. Air Scullin replied: I emphatically deny both statements. Amid uproar Mr Beasley called out, “ And 1 deny that.” Later, when Mr Scullin repeated that the decision was unanimous, Mr Beasley cried: “You are lying.” Air Scullin said: I leave it to members to decide who has told the .truth.