AUSTRALIAN FINANCE
MR. THEODORE’S PROPOSAL
DENOUNCED BY BANKERS
[BY CABLE —PRESS ASSN. —COPYRIGHT.]
SYDNEYY, February 27.
Financiers are not favourably impressed with Mr Theodore’s latest proposals for “raising the wind.” His so-called fiduciary note issue was denounced as equally impracticable as his earlier scheme.
A leading banker said that the whole thing came back to inflation. The result would be to force prices upwards. It would be necessary for the fiduciary portion of the notes issue to be backed by securities of some kind, whereas Government securities at the present moment were at a considerable discount in the market. One proportion of gold backing had been lowered from 52 per cent, in June to 34 per cent, to-day by the shipments of gold made to London, and no sane financier would recommend the process of inflation to be carried further..
THEODORE’S CONFIDENCE.
SYDNEY, February 27.
Mr E. G. Theodore, Federal Treasurer, returned to Sydney from Melbourne to-day. He met a nhmber of his supporters in conference on the subjects of the financial outlook and recent political developments. It is understood, he told them, that he was sanguine the Senate would agree to the proposed fiduciary note issue of £18,000,000.
DISTINCTIVE DESIGN.
CANBERRA,’ February 27
The Federal Government intends the fiduciary note issue to be distinctive in design, and that the “promise to pay” in gold on which appears on all the Commonwealth notes, shall be omitted. The Government intends to introduce a special measure authorising the Commonwealth Bank to make the issue.
NO REAL REMEDY.
LONDON, February 27.
The “Financial News” points out that to increase the “fiduciary issue” without regard to a sound economic policv can only intensify Australia’s troubles. The root of the disorder will remain, just because essential reforms are being imperfectly carried out, and while it remains one dose of currency inflation will merely excite a craving for another. • BANK OF AUSTRALIA. LONDON, February 27. The “Times’s” city editor, commenting on the Hank of Australia’s dividend, says: “This result has been obtained in a period of exceptional difficulties. It is decidedly satisfactory. The Bank is one of the three large Australian institutions with its head office in England. -It is therefore earning its profits in the depreciated Australian pounds, while paying its' dividends in sterling, wherefore the announcement of the same dividend as before implies even better results than are apparent. The market had been prepared for a lower dividend. The' good impression thus created has resulted in the shares, which were purchaseable at £7/5/- on Wednesday, changing hands at £B/5/- yesterday.
INJURIOUS PROPAGANDA.
LONDON, February 26.
Lord Stanley, in his capacity as President of the British-Australia Society, has sent a letter to the, Press, expressing surprise as a representative of the people at the Australian propaganda. He declares: To injure Australian credit would be insane. It is unwise for representative Australians to stir up hostility in England, for on the support of England largely depends the restoration of Australian credit. The news and comment relating to Australia are sympathetic towards her difficulties, and are inspired by a desire to assist her in her difficulties.
“TWO COURSES OPEN.”
SYDNEY, February 27.
The Premier of New South Wales, Mr Lang, to-day. accused the Commonwealth and other States of repudiating amounts which the New South Wales Government had spent on their behalf. He added that the chief item was an account .for £737,733, which' his Government had submitted to the dommonwealth. There was. also one of £305,216, which New South Wales had paid out in the redemption of closer settlement debentures. This item was purely a Loan Council debt, and that body had now repudiated it; “Two courses are open to Australia,” said Mr Lang. “One is to adopt the New South Wales' Labour 'plan, informing our creditors of our inability to pay, and making an honourable settlement with them. The other is to drift along shouting, ‘We can and will pay our debts,’ knowing that ,we cannot until the inevitable ‘black Thursday’ arrives, when not only principal and interest will have to be repudiated, but when finance for ordinary Government services will not be available.”
N.S.W. LABOURITES “BLACK." ♦ —(_ SYDNEY, February 28.
It is authoritatively stated in State Labour circles that those New South Wales members of,the Federal Labour Party who declined to range themselves behind Mr Lang’s financial plan and take part in the East Sydney by-election campaign, will not receive the endorsement of the State Executive in the event of an early election, which it is believed will come before June. BRITISH PRESS ATTITUDE. (Received February 28, 9.30 a.m.) MELBOURNE, February 28. Cablegrams have been received by the Australian Press Association from Viscount Rothermere, repudiating the “mischievous statement of the President of the National Council of Women at a Melbourne Town Hall meeting recently, that the whole British Press, with the exception of the ‘Times,’ is engaged in insidious propaganda against Australian prestige.” s Viscount Rothermere hastens to assure his confreres of the Press that
the British newspapers without exception throughout the crisis have taken up the most helpful sympathetic attitude towards the Commonwealth. “I assure you, as one in charge of the greatest engine of publicity in Great Britain, that' there is throughout this country a desire to stand shoulder to shoulder with Australia in all her difficulties.” “I am entirely in favour,” adds Viscount Rothermere, “of the cancellation of all war ’ debts between the constituent members, of the British Commonwealth. I believe that by this a. great step will have been taken towards the extinction of all war debts between the Allies and other associates who fought together in the [Great War.”
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Bibliographic details
Greymouth Evening Star, 28 February 1931, Page 7
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938AUSTRALIAN FINANCE Greymouth Evening Star, 28 February 1931, Page 7
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