AUSTRALIAN NEWS

Hawke's Bay Tribune, Volume XXII, Issue 42, 2 February 1932, Page 8

AUSTRALIAN NEWS

PREMIERS’ CONFERENCE

N.S.W. DEFICIT. LANG PREPARING REPLY. Melbourne, February 1. The tenseness of the atmosphere when the Premiers’ conference resumed to-day was not improved when Mr Lang announced that he proposed at a later stage to make a prepared statement replying to what he described as “vicious lies’’ contained in the statement of Commonwealth policy regarding New South Wales.

At one period during Mr Lyons’ temporary absence, Mr Lang, as representative of the senior State, occupied the chair. He was attended by Mr Lamaro, State Attorney-General, and the Crown solicitor, Mr Clarke. The position of States which had exceeded the deficits permitted under the Premiers’ plan was minutely discussed. Mr Bruce, assistant Federal Treasurer, remarked that Queensland’s deficit seemed the most hopeless of all. Eventually all the Treasurers were asked to give an undertaking to the conference that they will adhere rigidly to the Premiers’ plan. This will entail further euts in expenditure in nil States concerned. The Commonwealth Bank has indicated that this is necessary so that by the cad of the financial year the various Governments may come within the Premiers’ plan limits of deficits.

NEW SOUTH WALES DEFAULTS Melbourne, February 1. Neither the Loan Council nor the New South Wales Government paid the £900,000 interest due by New South Wales to overseas bondholders to day. Thus default occurs. Mr Lang is making a bitter statement to-night at the Loan Council, alleging vicious propaganda against his Government.

COMMONWEALTH’S ACTION. CRITICISED IN LONDON. London, February 1. The “Financial Times” complains of the Commonwealth Government’s failure to honour its undertaking to meet defaulting State Governments ’ interest due to bondholders. The paper says: “Many bought bonds believing they were a Commonwealth liability and would not have purchased them if the State stood alone.” The.“ Financial News,” in the same strain, says it was generally and justifiably assumed that the liability of New South Wales would temporarily be shouldered as last year, and the Commonwealth cannot escape the legal liability under the Validation Act. While the Commonwealth had taught Mr Lang a useful lesson, it had chosen an illadvised and dangerous method. “The Times” says: “The Commonwealth decision need not alarm holders of New South Wales stocks. The difficulty at the moment is to decide how best to protect both the interests of the creditors of New South Wales and the credit of Australia. There' will be’ no default, though there may be a temporary suspension of payments. The result of the decision must be to bring to a head the struggle between Mr Lang and the rest of Aus. tralia. The outcome can be awaited with. confidence.”

SYDNEY STOCK EXCHANGE. ATMOSPHERE OF CAUTION. Sydney, Feb. 1. An atmosphere of caution prevails on the Stock Exchange owing to the uncertain financial and political outlook. Bonds, however, were fairly strong, eight issues of four per cents showing advances from 2s 6d to 7s 6d. Sales were recorded as follows: — 1938 £94 12s 6d, 1944 £93 10s, 1947 £93 17s 6d, 1950 £94 12s 6d, 1953 £93, 1959 £93 17s 6d, 1961 £93 17s 6d, 1957 £93 8s 9d. Banking scrip is steady, Bank of New South Wales selling at £3O, National Bank (£5 paid) £5 15s. Colonial Sugars went higher, buyers £42, sellers £45, but no business was done to-day. Millaquin Sugars were easier with a sale at 255. Other sales were: Howard Smith Bs, United Insurance £8 15s, Tooths 275, Tooheys 17s 9d, British Tobacco 30s, Goldsbrongh Mort 26s 6d, Henry Jones 28s, Australian Glass 335, Australian Gas A£s 15s, Dunlop Perdriau (New Zealand delivery) 13s, pref. 27s fid, Broken Hill South 47s 6d, North Broken Hill 60s 6d. HURRICANE AT BOURSE, BUILDINGS UNROOFED. Sydney, February 1. A hurricane at Bourke today unroofed houses and outbuildings and severely damaged two aeroplanes which landed there to refuel.

SYDNEY WOOL SALES

FRESH RECORD FOB GREASY MTRINO. Sydney, February 1. A fresh record for the season was made at the wool sales to-day for greasy merino—namely, 32d. The offerings totalled 10,246 bales, of which 9677 were acid, also 593 privately. Japanese and Yorkshire buyers were most insistent. Prices for all merino fleece and skirting hnwvd an advance of five nor < 11. l>,.\e Inst week’s levels. <. ~ai ii-ipnted in