FEDERAL REHABILITATION

Hawera Star, Volume L, 16 February 1931, Page 9

FEDERAL REHABILITATION

LATE EDITION

“PROPOSALS NOW POLITICAL”

LONDON COMMENT ON PLANS

“REALITIES NOT FACED”

(United Press Association —*>y idectric Telegraph

Copyright.; Received 12.30 p.m. to-day. LONDON, Fob. 1.1. A fmn noin I commentator writes: “Sincoi the proposals Lor the rehabilitation of Australian finance are now a question of politics rather than of finance, it is difficult to pronounce on the subject without entering the political arena. “Bankers and' financiers here are disinclined towards public utterances, being most chary of the appearance of unwarrantable interference in what a section of Australian opinion might regard largely as a domestic concern. Nevertheless, financial opinion in London definitely condemns Mr Theodore’s proposals scarcely less than Mr Lang’s, though after the first shock the latter realised l they would be impossible. “The city argues thus: The Commonwealth is 'in sore straits through the world slump in commodity prices, coupled with an orgy of borrowing from 1922 to 1928. The operating of economic laws blocks the royal road to prosperity and the only exit is drastic cuts in Gevornment expenditure, a reduction of national costs of production and the abandonment of the traditional policy of overseas borrowings. “While Australian politicians fail to face realities they cannot be helped. Thus far their utterances indicate that they are too frightened by their constituencies to adopt drastic measures or are not capable of realising the situation. London, pending an alteration of tlie position, cannot offer the assistance which it would otherwise give most willingly. “Whatever were Mr Scullin’s motives in reinstating Air Theodore it has greatly damaged his prestige here since financiers are already familiar with Mr Theodore’s views and always regarded them as utterly unsound, apart- altogether from political considerations.”

DIVIDEN D P A VALENT. BANK REPLIES TO PROTEST. SYDNEY, Feb. 15. A telegram published here records the protest by the Auckland Stock Exchange against the decision of the Bank of New South Wales to pay its dividend to New Zealand shareholders in A ust ralian eur renc v. An official of tiiat bank to-day described the protest as absurd, asking: “Why should a shareholder on the Wellington register get a higher monetary return than the Australian holder; The universal payment of the dividend in Australian currency has placed all shareholders on an equal footing.

FOLLOWERS OF AIR. LANG. LAROUB EXECUTIVE DECIDES. SYDNEY. Feb. 14. ■Completely ignoring Air SeulJin, the Australian 'Labour "Party executive decided that the policy of the Labour Party in the East Sydney by-election campaign should be that enunciated by Air .1. T. Lang at the financial conference at Canberra. The executive selected Alderman E. J. “Ward as candidate and administered a further rebuff to Air Scullin by inviting the Assistant Minister of Industry, Mr Beasley,- to open the Labour campaign.

Tlie resolution adopted by the meeting read: “This executive believes that the policy of Mr Lang is the only statesmanlike and sane policy yet- advanced by any of the responsible Australian political leaders.

IN STATE OF FLUX. PARTY WRANGLING- CONTINUES. Received 2 n.m. to-dav. SYDNEY, Feb. 16. The political situation continues in a state of flux. The Melbourne financial agreement, representing voluntary self-denial and an undertaking by the Australian Governments to reduce expenditure and balance their Budgets remained practically a dead letter for six an on fibs owing to the Labour Left •Wingers’ refusal to recognise the needs of the situation, and it has now been replaced by the Canberra, agreement. embodying a three-year plan for rehabilitation, signed at midnight on Friday by all the leaders, except Mr Lang.

So far as its promises may help the country they are dependent on the goodwill of caucus and the various Parliaments, and the public is not assured that all will undertake fulfilment, which entails radical sacrifices.

The Stock Exchange continues steady despite the political uncertainties, and the announcement of the three-year plan caused a slight firming of industrial stocks. The propose!! special tax on interest, however, cast a shadow over dealings in Government bonds. Yesterday's Labour conference to decide the manner of appeal, to East Sydney voters was held in camera, but sidelights make it appear there was a lively advocacy of the rival policies. Though no agreement was reached Mr Grave’s announcement that no advocate of the Seullin-Theodore policy would be allowed on the platform indicates that the Left Wingers hold sway, and their protagonist, Air Beasley (Assistant-Minister of Industry) will outline the party’s policy at the opening of the campaign. Thus will be seen the spectacle of a junior Minister usurping a place at the head of the Government.