REDUCTION OF INTEREST

Hawera Star, Volume L, 24 February 1931, Page 5

REDUCTION OF INTEREST

MR. LANG REITERATES POLICY j THREE PER CENT. LOANS URGED 1 ALTERATION IN CURRENCY. i (United Press Association —By Electric j Ooyy riifiit. ‘ SYDNEY, Feb. 22.

The New South Wales Government’s attitude towards its overseas obligations was recapitulated by the Premier, Mr J. T. Lang, in a statement ot policy before East Sydney electors to-night at the Paddington Town Hall. ‘ ‘ Our plan is a complete scalmg-down of all interest charges and until such time as oversea financial interests ex- ; tend to Australia conditions of repayment similar to those given by the United States to England we shall make no further payment of interest. I ‘ 1 Could anything be more pitiful, j Mr Lang asked, “than a continuous meeting of Australian Premiers from, which nothing ever results? It is time . the Australian Governments forgot' London and began to think of Ausfl Mr Lang added that.it was wrong to sav the Commonwealth Government would have to pay New South Wales’ debts if the New South Wales Government defaulted, apart from the fact that the •Commonwealth could not pay its own debts. He reminded his hearers that New South Wales paid its interest debts through its own bank dir- : ect to the Westminster Bank in London, while interest cheques for local loans were paid direct from the State Treasury to the bondholder. The Labour movement of New South Wales dissociated itself from any proceedings between the Premiers’ conference and the bankers. .. The second step in the New South Wales financial policy, said Mr Lang, was to reduce the interest on Ausi tralian loans to three per cent., wheroIby bondholders would be making an adequate, equitable distribution to the country when it was most needed, and once the rate of interest of the Government interest was down the bank interest would be forced down by the Government. If necessary, these two features could be put into effect without the concurrence of the Upper House. ! fi'he Government also proposed to alter the currency and adopt a goods standard. Mr Lang urged the electors of East Sydney to give a lead to Mr Scullin’s and the other Governments in this, matter of radical financial reform. The crowd cheered Mr Lang enthusiastically.