ROAD TO PROSPERITY

Hawera Star, Volume L, 10 February 1931, Page 8

ROAD TO PROSPERITY

DUTY OF AUSTRALIA. MR. THEODORE’S NEW PLAN. (United Press Association —By Electric Telegraph Copyright.) CANBERRA, Feb. 8. A reduction by £15,000,000 a year in the Government expenditure is the basis of a. three-year plan drawn up by a committee of experts to restore Australia’s prosperity. “The alternative,” the experts say, “is to default in the Government’s payments, the, evils of which would he immeasurably greater than the hardship which a nation would be asked to face.” The danger of inflation is stronglly condemned. “This is not the road to recovery, but to collapse. “A reduction of interest rates by savings. Ranks is also a- possible means .if bringing about a fall in interest charges. Pensions of all kinds should be. revised: and made .the subject of a close examination. “The curtailment of road expenditure is imperative. Employment- must be made profitable and all obstacles to reduced costs must be removed.” Mr. E“. G. Theodore explained his! long-waited financial 'policy at the Premiers’ Conference, advocating the restoration of the 1920 currency levels, and claiming that the adoption of this clan would increase the national income by about £100,000,(X)0.

He expressed the opinion that this •r on IJ provide work for between 100,000 and 200,000 persons, and would cause an additional production of material wealth amounting to £30,0CX),00. He emphasised that the reduction in interest rates which would be_ the effect -f his policy was the logical way of e-caping from the burden which was becoming more and more onerous every week. There would he no repudiation of obligations, hut there vou'ld be equality of sacrifice. The Sunday Press points out that ' Ivv his speech. Mr. Theodore- has enhanced his reputation as a mystery man. for, while hinting at- a- reduction (if interest- rates, lie failed specifically to state how lie would- carry out his police, leaving the Premiers wondering whether it is tantamount to inflation. ( The conference has; adjourned until < Monday.