MENACE OF DEPRESSION

Hawera Star, Volume L, 9 February 1931, Page 8

MENACE OF DEPRESSION

— * AUSTRALIA AWAITS A LEAD CONFERENCE AT THE CAPITAL REFUSAL IU REDUCE A AGES, | United I'ftfa asiociatiwi—By JCoettie lelt graph i Copyngtu-.j, SXEGvEV, Fsb. (j. Although Australians have been dii tried temporarily from their troubles by flip deplorable happenings I Ins ucek m the Dominion, they a.ie again beginning to wonder when the heavy j >SIJ J of depression wliicli liangs -over the Commonwealth will .show signs oi tilting. Every Government in every State is looking to the Conimolnveaith Uuverndment tor a lead. Every citi--55011 in every State awaits anxiously some tangible pronoiincenieiits which will afford work for breadwinners anti relief from the intolerable economic depression, which threatens to develop into .something more sinister. Action by the Common wealth Government in the direction desired began early this week at Canberra with a conference between the Prime Minister. the Treasurer and the chairman of the Commonwealth Bank. Tlieir conversations concluded yesterday, and now a conference of the various .Premiers and Treasurers lias begun at the Federal capital to consider the -threeyear plan lor the financial reliahilitaiion ,it the Commonweal!li. Reports arriving from Canberra indicate that there is already it hitch, both Mr. Sr-ul--lin and Air. Lang declaring that they will not consider any plan involving m reduction of wages or the standard of living. ■The Prime Atiuisfer, addressing Him conlVmice on the national linances, reviewed the heavy fall of exports and the terrific growth of unemployment, lie said the Governments of the States and the Commonwealth were faced with the task of meeting a very serious budgetary position. fie estimated the Commonwealth deficit for 1930-31 would lie £10,000,(J00 and those of the States five, millions. He feared the position the following year on the basis of present conditions would he even worse.

Air. Sculliu emphasised that although the ( onimonwealtli Government was a party to the Nieineyer ngreemnt, by which the Budget must be balanced, it had been impossible to honour the agreement owing to the immense decline in Customs anil excise revenue and other sources.. “The task to which we. set ourselves was Loo great for immediate accomplishment.” he said The Federal Govcrumcnl’s commitments for the year were as follow :--: Interest and sinking fund, eibEUdlMf 10; exchange, £3,(JOO,O'J(J; war invalid and old age pensions, £20,000,Ui <0; defence £3,000,OOP: payments to * lie- Stales, J.-jdCO.LiOd; public utilities, £11.000,00(1 ; ordina ..v departments and misitllaneous serve: £o,‘n)o.noO; tet-al, £70,000,000. Turning to the Government’s loan debts Air. Seulliu said the shdrt-term indebtedness of the Conlinonwealtli ahcl States by way of overdrafts and treasury bills at the end of this month was estimated at £55,500,000, of which £38,000(000 was owed in London and the remainder in Australia. At the present rate of exchange the problem of meeting overseas liabilities involved the payment of an extra £10.000,000. Air. Scullin urged the conference to turn its attention to a reduction of the interest rate on future, loans and added that the essential need at tile moment was a revival of industry in order to provide work, which would, naturally lighten the tassk of restoring budget equilibrium. Shortly after the conference settled down to business the Prime Alinister astonish red the delegations by declaring that the committee of financial exports which drew up a plait for submission to the conference had no right to make recommendations: it was merely required to collect data and statistics for the information of those j present.