AUSTRALIA’S FINANCES

Evening Star, Issue 21004, 19 January 1932, Page 7

AUSTRALIA’S FINANCES

THE FLOATING DEBT MR LYONS DISTURBED Press Association—By Telegraph—Copyright. SYDNEY, January 18. The Prime Minister (Mr J. A. Lyons), in acknowledging a civic welcome, appealed to the community and every section of political thought to liolp in getting men off the dole and into profitable employment where they would become an asset instead of a liability. He went on to allude to the disturbing position in regard to tho floating debt. He said that in June of 1929 the floating debt in Australia and London was £50,500,000, in December of 1931 it was £78,826,000, and it looked as though it would bo £85,000,000 next June. The people must not be deceived by the apparent improvement in the general situation, as there were forces outside Australia that would seriously affect Australia’s position, and unless some settlement of international difficulties was reached the economic position could not improve. The Australian banks were carrying tho Governments on till the end of February, but there was no provision after that. The Governments as a whole wanted £8,500,000 for public works, and that was one of.the chief problems which the Loan Council would have to face at the end of the month. COSTS OF PRODUCTION ALLIED SUBJECTS ALSO DISCUSSED. SYDNEY, January 19. (Received January 19, at noon.) That the custodians of Australian currency and finance should aim at a restored balance between Australian costs and prices at a price level making active production profitable is an argument in a circular issued by the Bank of New South Wales on the subject of whether there should be stability of the “ parity ” of exchange. The conclusion come to in the circular is that stability in the rate of exchange with sterling is preferable to a return to parity.

A MILLION DEFICIT. MR LYONS CONDEMNS LANG GOVERNMENT. SYDNEY, January 19. (Received January 19, at 10.50 a.m.) In a speech at Sydney Mr Lyons said the Federal deficit would not be more than £1,000,000 in view of the savings made under the Hoover Plan. “ We look forward,” he said, “ to the time when this unfortunate tragic Government of yours will have to go to the people of Now South Wales. The task of the Federal Government would be utterly hopeless did wo not expect that somewhere in the near future you will remove this incubus from Now South Wales.”-