ADJUSTMENT OF BURDENS

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

ADJUSTMENT OF BURDENS

NATIONAL SOLVENCY SOUGHT' AUSTRALIAN CONFERENCE PLAN Hi BAST PER CAUSER SURPRISE. (IlniteU Prnflrt arsocuuu’li —By Electric I’elegrapb Copy right., j CANBERRA, Feb. 15. The conference of Federal and State Ministers agreed to adopt a three-year p an “to meet the national emergency :iicl bring about an adjustment of burdens.” Hie objects aimed at arc the reabsorption m industry of unemployed, the maintenance of national solvency, me restoration of Budget equilibrium, and an, equitable spread of loss of national income over all section's of the community.

The proposals include substantial reductions. of interest rates on deposits and advances of the Commonwealth Bank, a reduction in wages and salaries and allowance in State and Commonwealth public services, ami a special tax on interest from bonds.

These decisions followed it long discussion on the reply of tho Commonwealth Bank to the Federal Treasurer, Mr E. G. Theodore,

After participating in the decision of the Premiers’ and Treasurers’ Con-, feience, Mr Theodore caused surprise to-day by resuming the advocacy of his own plan and attacking Australian banking policy. He declares lie is convinced tho policy he outlined' to the conference covers the only practicable way of meeting equitably economic problems now facing the country by attempting to correct the British and Australian blunder of returning to the gold standard in 1925. Firstly, business activity must be stimulated in every direction so as to provide employment for a maximum number of I men ; secondly, Government costs must be cut to the bone; thirdly, there must be full recognition and payment of external indebtedness within the limits of Australia’s capacity; fourthly, there must be no overseas interference with the policy Australia adopts to obtain in te ni a 1 ad j usti n ents. Mr Theodore also urges an endeavour to balance the Budget within the next three years and a universal sharing of the sacrifices necessary to secure economic adjustment.

PRESS COMMENT AT HOME

OPPOSITION TO INFLATION

LONDON, Feb. 14. The “Morning Post’s” financial editor says that if Sir Robert Gibson, chairman of the Commonwealth Bank Board, is successful in rendering the necessary financial credit facilities and at the same time is able to prevent undue credit expansion, he will undoubtedly perform an enormous service to Australia. Students of the situation realise it is not difficult to appreciate that a moderate credit expansion when certain economic reforms are effected is possible to an extent which is impossible when such reforms are rejected. The “Financial News” says the Commonwealth Bank’s refusal to assist inflationary measures has been well received in banking circles, in London and is regarded as the first move towards public economy and retrenchment. It is believed the bank acted in close co-operation with the trading banks, which will, it is anticipated shortly officially endorse Sir Robert’s attitude. It is hoped the position will be cleared speedily in view of the- bill maturing on March 2. The mystery about the Australian war debts negotiations deepens. Replying to an Australian Press Association personal inquiry, Mi: Ramsay MacDonald said l : “I know nothing about it and I would advise the greatest care concerning; the rumours.” Tlie “Observer,’ ’after referring to New Zealand’s bold and brave attempt to face realities, says the adoption of Mr Lang’s scheme will destroy Australia’s credit abroad and impoverish thousands of citizens at home. Mr Lang’s scheme is parallel with the American debt settlement and is wholly fallacious, but Mr Scullin’s proposal to lengthen the war debt redemption period is quite another thing. The paper declares Mr Theodore’s limited' inflation plan is specious. Australia is not yet out of tho wood, tho writer adds.