AUSTRALIA'S FINANCE

Grey River Argus, 8 September 1930, Page 4

AUSTRALIA'S FINANCE

ECONOMY SESSION Federal Parliament ALL ROUND SALARY CUTS. CABINET'S THOROUGH GOING POLICY. (Aus. & N.Z. Cable Assn.) MELBOURNE, September 6. The Federal Parliament will be called together in October for a special economy session. This is the result of the momentous meetings of the Federal Cabinet. It is understood that the acting-Treasurer, Mr Lyons (Tasmania) submitted to the meeting of the Federal Cabinet proposals for a reduction, on a sliding scale basis, of Ministerial, Parliamentary and Public Service salaries, increased taxation on the higher private incomes and a tax on interest applicable to Commonwealth bonds. The proposed salary reductions range from fifteen per cent, to ten per cent, according to the size of the salary. Cabinet is sitting late to-night and possibly the meeting will go over the week-end. Sir Robert Gibsun, chairman of the Commonwealth Bank directors, attended the Conference at the urgent request of the Acting-Prime Minister, 31 r J. E. Fenton, in order to explain the serious position of the finances and to convince Mr Fenton’s colleagues of the absolute need of immediate drastic action to stop the drift. The special economy session of the Commonwealth Parliament being summoned next month is in order to enact legislation to deal with unemployment, to impose a special interest tax, to reduce Ministerial, Parliamentary and Public /Servants’ salaries, to readjust the maternity allowance and pensions payments, to tax further imported luxuries and to readjust taxation on higher incomes. The Federal Cabinet came to these decisions and at Hie same lime decided to honour the pledge given by Air ’ Scullin to balance the budget. The Acting Prime Minister (Mr Fenton) declared that the Government will uphold every obligation to the people of this country and to its creditors. Cabinet adjourned till to-day when steps will be taken to frame a sessional programme and work out details of the proposed legislation. Most of the lengthy sittings were spent in debating a suggestion that a special tax be imposed on interest. Sir Robert Gibson had three hours | consultation with the Federal Mini isters. He explained the financial I position and suggested plans for fin- | anting the State and Federal Governmeats over a considerable period. J Federal Ministers stated that alt though the financial situation, due to | the rapidly declining revenues, was

acute, the Government had the matter well in hand. They asserted that the rumours of a split in the Ministry were greatly exaggerated. Mr Green, who is flying from West Australia. W was not present at the meeting. The Assistant Minister of Customs (Air Forde) was also absent. Non-Party Programme SEVERE ECONOMIES. FEDERAL CABINET DECISIONS. (Received September 7 at 6.30 p.m.) MELBOURNE, September 7. Th-.* Fderal Cabinet concluded its meeting on Saturday afternoon with a complete agiyement up the necessity of balancing the waltih Bu'-get. It was stated the th- only alternative to an increase in th-- unemployment wi s a national non-party programme behind whrh the whole community could rally. A Cabinet sub-commit tec will confer with tiie representatives of the employ.*."; anti thu employees. Severe economies will be enforced in the Commonwealth administration, wh’lc th*.* taxa-ion on tae sheltered incomes will be fuUther explored. ' The acting Federal Prime Minister, i Hoi:. Mr Fenton in L.- statement <>n the meeting, included the announce-* meat that Sir Robert Gibson, whose i term as Chairman of the CommonI wealth Bank Directorate expires this month. wa< reappointed. He also announced that the vacancy on the bank’s Board of Directors was filled jby the appointment of Mr Maurice Duffy, of Melbourne.

Further Slump I BEARS SCARE INVESTORS. SYDNEY. September 7. I The investment business being done f on the stock exchanges iu Sydney and Melbourne is infinitesimal. ; The bears have now’ adopted as their slogan; “Sell everything.” Con1 sequently many investments are dirt cheap, while their capital security is - equally as sound as it was months ago. There is an inability to establish a. stable level of prices. This has 1 scared the investors, who have withI drawn from the market until the outj look is brighter. I Bank shares are now below par, while brewery and gas shares havo touched their lowest level for veara. RATIONING OF SHIPPING.

Important decisions have been reached by the Council of Australian Oversea Transport Association, having as its object the ratiqnalfeation of shipping, in handling Australian exports, stabilisation of freights at present levels, and an eventual reduction in freights. Freight on wool, except that shipped to Japan and the United States, will be increased by one-six-teenth of a penny a pound, and the “loyalty” rebate of 1/9 per bale on greasy wool, and 1/6 per bale ou scoured woo], will he made at the end of the season. A compromise has been reached on the question of payment of freight on refrigerated cargo on the basis of London sterling, shipowners agreeing to meet half the cost of exchange. Exporters of butter and fruit agreed to this proposal. The meat industry will decide the question next week.