COMMONWEALTH PLIGHT

Hawera Star, Volume L, 16 January 1931, Page 5

COMMONWEALTH PLIGHT

,'search for remedy FINANCE EXTREMES OPPOSED PRIME MINISTER’S MESSAGE. (United Press Association —By Electric Telegraph * Copyright.) SYDNEY, Jan. 15. “The remedy is neither deflation nor inflation; the remedy in my judgment is restoration and stabilsation.’’ With these magic words the Prime Minister, Mr. J. H. Scullin replied to a section of Labour, chiefly of New South Wales, which is clamouring for inflation of currency. He delivered an hour’s speech to-night at the Ashfieldi town hall in opening the Labour campaign in the Parkes. by-election. Thousands were unable to gain admission. Mr. Scullin, who received a tremendous ovation, emphasised the • very serious plight of the Commonwealth and explained that the financial and economic position had gone from bad to worse. It would not be possible to balance the budget for the current financial year, he said. He then proceeded to examine the suggestions for meeting the position. “Some 'people .say we should bring down prices and wages; others say we should go in for inflation—my answer to that is that the remedy is neither deflation nor inflation; the remedy in my judgment is restoration and stabilisation. (Prolonged cheers). While I was abroad I discussed the depression with some of the biggest brains in many countries and I found that the inojrb they knew about the subject the fesh they knew about the remedy. He added that there was no easy road; il there was, one could be sure the older nations would not be where they were to-dav.

BENEFIT ONLY” ROND HOLDERS

“I do not want to create in the minds, of the workers the impression that an easy road is by printing a mass of paper. There is a very real danger in printing notes because it leads to wild inflation of currency; wages are depressed and rents rise. There are often expansions of credit and sometimes these are not controlled by the banks in strict accordance with economic conditions. The only people likely to benefit are the bond-holders.” Mr. Scullin said what really was needed in Australia was an infusion of new capital. One suggestion was to print, notes; that would be advisable only until arrangements could be made for the flotation of a loan. Bank advances might be made where possible in order to create a stimulus for production and marketing giving employment. Air. Scullin said he would go into this aspect immediately with his colleagues. The whole country and the newspers must work to some definite plan in order to create a greater feeling of security, seeking the best advice and aiming always at a restoration of confidence. He assured the people his Government would do nothing to ruin Australia, because that would mean ruination of the working classes whom he had represented for many of the best years qf his life. Nominations closed to-day for the Parkes -by-election. There are four candidates Messrs. Alan* (National-s-t), Joseph Alartin (official Labour), Richard Blake (describing himself as mi Economic Reformite) and Edward Tijjpp (Communist). APPEAL TO OPPOSITION. • DEC LINED BY MR, SCULLIN. MELBOURNE, Jan. 15. ft is revealed that the proposal to ask the leaders of Opposition parties to assist in efforts to re-establish Australian finance was. rejected by Mr. Scullin at yesterday’s Loan Council’s meeting. The Prime Alinister expressed the opinion that it was impracticable. Mr. Barnes, the Queensland Treasurer, is pessimistic about the outcome of the proposed conference of experts which has been directed to formulate a three-vear plan'for the rehabiliation of the national finances. He cannot see how they can make incoming Govemmets accept the plans of their predecessors. Moreover, all sorts of political exingencies are likely to’ militate against the success of any plan.

PANIC-SELLING CEASED. LONDON, Jan. 14. The latest news indicating the strength of Mr. Scull in's position and Air. Lang’s weakening slightly has heartened the market for Australian docks with a. cessation of the recent panic selling says he city editor of the “Times.” Bargain hunters’ action has stiffened the quotations. There has been some selling of New Zealand stocks, influenced by the increased discount on the New Zealand pound sterling.