Grey River Argus MONDAY, September 8th, 1930. HEROIC MEASURES.

Grey River Argus, 8 September 1930, Page 4

Grey River Argus MONDAY, September 8th, 1930. HEROIC MEASURES.

II h'spilc nil of the mili-La bonr pre-is al legal ions that the Labour .Government of the ('ommon- 1 '[wealth was on the eve of a split . 1 litpon Ihe financial question, it. [transpires that the .Ministry has leome to the unanimous determinajtion that there must be no blinking the facts of the situation, (but that Australia must aim] above all things at national sol-, veney. 'The measures necessary' Ito attain this object are certain-' lly remarkable, not Io say heroic. I [but as there would he otherwise ■a deficit of nine, millions in the I Ifortlicoming budget, it is evident jthal nothing short of such measures are compatible with a full I [discharge of the Commonwealth’si financial obligations. It is some-j [what in the nature of the irony |of political history that the. task, [should fall Io the 10l of a Labour, [administration of cleaning up the 'financial mess made by a. capitalistic. regime. It. is not to be de-1 l.nicd that certain Stale ad-i tninisl rations representing La-; .hour have added their quota to] [the incubus of indebtedness, butt [far and away the. greater part of ’the burden now so heavily weigh-1 'ing upon the Federal Cabinet’s] 'shoulders has been imposed by j

the non-Labour administrations of j the past generation. A little' while ago every capitalist in thel {country was up in arms agains*. it he first steps taken by way of •taxation and trading restriction I ’to check the financial rot, but; |the anti-Labour press, while en-i eouraging in some degree that; tendency, has since turned on the section of the New South I Wales Labourites whose policy has been one of non-cooperation with the Federal Ministry. It has, however, been made plain by the Federal Prime Minister that if the Labour movement had endorsed the agitation for debt repudiation, a breach was inevitable, his last declaration on departing for the Imperial Conference. being that repudiation suggested a default that would be j calamitous to the while structure |of the present system, and being calculated to throw idle nearly a million people, such a suggestion .was not to be tolerated. It. is in [recognition of that fact that, his I colleague, Mr Lyons (who as

premier of Tasmania put that. State on its feet when Toryism' 'had sent if nearly bankrupt), has 'framed the plan to meet the situation which has now gained; [complete Ministerial endorse-, ment. It includes a. reduction of I all Federal salaries, from Ihe i Ministers, Members of Parliament and highly-paid officials downwards, with the largest percentage of cuts at, the. top, and a sliding scale for the lower salaries; also an increase in the taxes on the bigger private incomes, with a tax o.i interest, iu•cluding that on the now popular Commonwealth bonds. The plans also include provision to relieve unemployment, readjust _ pension payments, and make imported ( luxuries pay yet more towards the exchequer. The Cabinet, in [short, has decided that every’ 'national obligation is to be up-j lheld, and to submit its proposals! (for ratification without any delay

■at a special session of Parliament next month. That these measures are justified, and that they emphasise the wisdom of the steps previously taken as a eheck upon extravagance and |the sending loverseas of the means to meet the national obligations, the great majority both of the working class and the public generally in iAu:fralia, may be expected to agree. In Victoria, except for a (Comparatively small section, Lajbour has already indicated its [belief that the remedy lies in (mutual help towards ecouomy land better finance. In Western [Australia the Labour Opposition <is working 'with the Government (towards solvency, and in Queensland the. Labour Opposition has shown its recognition of the (inanciid problem, and a willingness to co-operate towards the solution. In South Australia, the Labour Government, like that in Victoria, has undertaken an economy campaign, in order Io balance the budget. Compared, indeed, with the Nationalist Govjcriniients in the States the Australian Labour Ministers have shown the greater initiative and resource, and it is only in New South Wales that (the issue of .repudiation has been raised. ;That some readjustment would |be helpful in the, matter of debt Obligations in the existing condi-

tlions, when the financiers are limiting the screw upon Australia, ‘is doubtless a reasonable view to lake, but since there seems no possibility meantime that anything like a moratorium or reduction in interest rates would be considered, the time is quite 'an inopportune one to force the issue. The|re was reported Io have been a section of the Federal Alinislry disposed to disagree with the proposals for a balanced budget and for economy, hut the head of the Commonwealth .Bank, who has just been reappointed, has doubtless helped 'to convince them that there is no alternative except precisely that suggested at Sydney, namely, repudiation anil national bankruptcy. Australia, despite her (present economic set-back and [policy of reconstruction, is not a .country that need fear the future, 'for a good season or two would bo enough Io restore her credit at Home and abroad' and the faith being now shown by her ‘.Government in a crisis such as none of its predecessors has cvei had to face will doubtless prove in. itself an inspiration for all flasses to unite in hastening a [complete recovery.