AUSTRALIAN CRISIS

Gisborne Times, Volume LXXII, Issue 11451, 27 February 1931, Page 5

AUSTRALIAN CRISIS

■ . -. C -,- ■ . PREMIERS’ CONFERENCE

BANKS’ REPLY CONSIDERED UNSATISFACTORY

(U.P7A.' by Elec. Tel. Copyright) MELBOURNE, Fob. 26

The Premiers’ conference adjourned till to-day, leaving readied no decisions.

It is understood that tho banks’ reply was unsatisfactory to the Federal Government. Air Scullin indicated that lio had anticipated a lead from the banks, and was disappointed at not getting it.

Air Lang was present. The other State Premiers criticised the New South Wales and Commonwealth Governments for what They termed tho evasions of economies or of attempts to, balance their budgets. The Premiers were astounded by tho receipt of a request from New South Wales for accommodation to thq extent of £BOO,OOO from the Loan Council. Consideration of this was adjourned till to-day.

NEW PARTY IN N.S.W. EX-SERVICEMEN AND LOYAL AUSTRALIANS U.P.A. by Elec. Tol. Copyright) SYDNEY, Fob, 26 A new party, aiming at thq organisation of ex-servicemen and loyal Australians, lias been formed in Sydney. CUT IN WAGES NORTHERN MINERS FAVOR GENERAL STRIKE (U.P.A. by Fine. Tel Copjtruzhl) SYDNEY, Feb. 26. Tlie northern miners’ management committee at Newcastle resolved to combat in every way a reduction of wages, and recommended a general strike policy as the “only logical method of resisting tlie present attack on wages.”

LOAN COUNCIL’S FIRAI STAND

N.S.W. AIUST COMPLY WITH CONDITIONS REPUDIATION CONDEARNED fP t* by Elec. Tel. Con*right) (Received Feb. 20, 11 p.m.) MELBOURNE. Feb. 2G. Unless the Premier of New South Wales agrees to conform to th G conditions of tho Loan Council, he wili not receive further financial accommodation. This vital decision, which applies to Air Lang’s latest application for £800,090, was reached at a meeting of the Premiers’ Conference, which resolved itself into a Loan Council this afternoon. The Premiers passed a resolution condemning Air Lang’s policy of repudiation and added that until h© decided that he would abide by the policy _ of tho Loan Council, it could not issue to him the £733,000 which he required to cover his Alarch commitments.

MR LANG'S EXPLANATION

(U.P.A. by Elec. Tel. Conyrighl) (Received Feb. 26, 11 p.m.) • SYDNEY, Feb. 26. In the. Legislative Assembly. Premier Lang, replying to a question about the £SOC,OOO. said the only application lie; had made to the Loan Council was one for some hundreds of thousands of redemption money due to the State, also some money due foxinterest. Air Lang added: “There is no danger of New South AY ales defaulting. as all requirements would Jap met until Alarch 31.”

FIDUCIARY CURRENCY THEODORE’S LATEST PLAN (U.P.A. by Elcc. Tel. Copyright) (Received Feb. 2G. 11 p.m.) MELBOURNE. Feb. 2G. Air Theodore, Federal Treasurer, intermed f'li c Loan Council that the Federal Government intended to introduce legislation for the creation of fiduciary currency limited to £18,000,000. one-third whereof would be devoted to a bounty on wheat. The Premiers’ Conference had previously listened to Mr Theodoro’s explanation for the creation of fiduciary currency limited to £18,000,000, the purposes for which were' to provide £1,000,000 a month for the absorption of the unemployed on reproductiev works in various States and a bounty on wheat. The representatives of the Commonwealth, Victoria, and South Australia approved tho plan, but Queensland, Western Australia, and Tasmania dissented. New South Wales was unrepresented. Thus a deadlock resulted, whereafter Mr Theodore, following a consultation by Mr Scujlin, made an announcement that the Government intended to go straight ahead with legislation giving qffoct to tho plan.

EXCHANGE RATE MAY 'SOON BE

LOWERED

(U.P.A. by Elec- Tel Copy right) (Received Feb. 2G, 11 p.m.) MELBOURNE, Feb. 20.

Addressing a conference of citrus growers, Air N. Underwood, of Mildura, said that he had received information from the bankers that the exchange rate might fall any time, and that it would certainly fall before the end of Alarch. The reduction, was- expected to be at least 50 per cent.

BANKERS' TERMS

BALANCED BUDGET THE FIRST ESSENTIAL

U. p -&. by Elec Tel. Copyright) (Received Feb. 27,- 1.10 a.m.) MELBOURNE,,Feb. 2G. • After a private conference of bankers tboir letter embodying their conclusions on the-r Theodore financial plan and the. three-year proposal plan for the rehabilitation of the national finance was made avilable for publication to-night.' The bankers begin by- endorsing suggestions for the absorption of undihployed on reproductive works, the maintenance of national solvency, the restoration of Budget equilibrium, and aii equitable spread of losses in national income over all'sections' of the community aiid.then express regret'that they cannot agteo ''fitli all t]ie methods suggested by the Federal Treasurer. Some of these, they say, are not based on sound economic lines and would rather accentuate the present difficulties. The hanks, however, are prepared to co-operate in any reasonable and practicable scheme likely• to afford relief in the present crisis. The first essential, was the putting of the finance of the Government in order with the conditions laid down bv experts in the three-yenr plan. If this were done there was little doubt that the hanks generally could make some reduction in tho.' present rates of interest. TliVv pointed out' that the overseas debt of the various 1

gavfurnmoritis must ultimately b{b futldqd, but this could not bo done until a definite effort was made towards*' Budget stability. The proposed special tax on government socuri* ties must, eventually load to difficulty in converting maturing loans or m funding floating debts or raising'new loans, . ~ •'••• Finally, tho bankers said that interest ibn Government overseas obligations would continue to be provided through the exchange pool as long as it was in the poweil of the banks to dq so. •HOME COMMENT ON POSITION " OF'STOCKS 1 fPress Association*! (Received F'eb. 26. .11 p.xn.) v LONDON, Feb. 26. The Financial .News attributes the firmness of Australian stocks to news of the cleavage in Labor ranks in New South;Wales, and: to. tho talk of a/reductipn of tbe exchange rats. Tlie. outside 1 market' "is practically dried übi ■’ • v "■