AUSTRALIAN FINANCE

Greymouth Evening Star, 23 August 1930, Page 7

AUSTRALIAN FINANCE

“TAKING THE MEDICINE” HUGE SUM TO BE SAVED [BY CABLE —PRESS ASSN. —COPYRIGHT.] SYDNEY, August 22. Between now and the end of 1934, the Australian Governments have to cover internal and external obligations already existing, with a reckoning for the current financing throughout that period, of about 261 millions sterling, of which thirty-nine represents the floating charges. However, as Sir Otto Niemeyer points out, there are no maturities of any significance in 1931, and this interval will afford a respite for the harassed Treasurers, but in 1932 loans totalling thirteen millions will mature. Australia is stirred and deeply concerned by Sir O. Niemeyer’s report, together with the drastic decisions at the Premiers’ Conference, and the Loan Council. The whole subject is 'on everybody’s lips. The majority of the people are resigning themselves to the inevitable. The “Evening News” says: The great “boom, borrow and burst debauch has ended. The Bill is presented. We have to meet it. Sir O'. Niemeyer has diagnosed the case, and prescribed medicine. AVe must, ourselves administer the dose. The Loans Council has undertaken to raise ho further loans overseas until after the existing oversea short-term indebtedness has been dealt with. Attempts will be made to eliminate the duplication of Commonwealth and State services. The Standing Committee appointed at the Melbourne Conference is to watch the operations of the common plan idea for the rehabilitation of Australian finance. Acting Prime Minister Fenton announces there is no intention at piesent of holding a special session of the Federal Parliament. As the result of the slump on the Stock Exchange, some of the Australian Banks have already called up 'overdrafts that had been made solely on the security of stocks and shares, which policy has contributed in no small measure to the continued heavy selling pressure on ’change in the past few weeks. The Commonwealth’s bonds, however, are holing their own. LONDON PRESS OPINIONS. LONDON, August 22. Australian affairs figure prominently in the Preses. The “Daily Telegiaph says: “Tliero is no member of the whole British Commonwealth of Nations which would not feel its pride lowered if Australia fell short of the highest standard in. meeting her obliThe conference of State Ministers has. been deeply impressed by Sir O. Niemeyer’s statement that pledges given should produce an immediate ameliorative effect on Australian credit. The real test will come when a drastic diminution of revenue has its inevitable reactions upon wages and tne standards of living and its economies in the departments.” The “Morning Post” says: “The crisis is nothing more or less than the nemesis on an orgy of extravagance. The posiron -n Australia should provide a grim warning to the British Gov**!*uiYiPiit o; ilie fate countries which refuse to cut their coat according to their cloth.” Tho “News Chronicle” says: “The execution of tho Melbourne Conference decisions will need nerve and courage.’-’ “The Times” says: “While the Australian cricketers are emerging brilliantly from the ordeal of the British climate, their compatriots have made a successful start in a grimmer test cm the home ground. Fortunately it is unnecessary to take tho situation too tragically. Sir Otto Niemeyer has rightly emphasised the dark side, in order to Convince the authorities of the necessity for drastic ac'b.-n. It certainly appears that he has succeeded in his object.”