FINANCIAL CIRCLES RELIEVED.

Horowhenua Chronicle, 26 August 1930, Page 7

FINANCIAL CIRCLES RELIEVED.

AUSTRALIA'S DECISION TO OBT DOWN TO FACTS IS WELCOMED.

Received Monday, 7 p.m. LONDON, Aug. 24

Not for years have Australian financial affairs received so much attention in the British press as during the past week. First came the series of differing forecasts of the Melbourne conference’s decisions from various correspondents. Financial circles were relieved by the decision published with a full official report, of which adequate summaries appeared in the entire press.

The city generally, having taken time to digest the report, has favourably received the decisions as evidence of a nation-wide common policy. The appointment of a committee of repiy sentatives of the States as well as the Commonwealth, to carry out the decisions, is welcomed as a proof that the problems are going to be tackled earnestly and effectively loading to a steady if gradual movement towards equilibrium. . In the meantime, despite some wild alarmist press cables from Australia, responsible quarters never doubted that the recently consummated exchange pool ensured absolutely due provision for debt services.

Sir Otto Niemeycr’s approval of the Melbourne resolutions has naturally given added value to this and leading authorities are convinced that If the people will only accept the inevitable sacrifices entailed by the necessity for reducing costs of production, there will bo stiver confidence here in the Australian situation than there has been for some time past. The further liquidation of industrial shares ahd a steady investment demand for gilt-edgeds, have been features of the stock exchange during the pa|t week. Australian stocks have shared with other crilt-edgeds a steady improvement during the week and the publication of Melbourne conference resolutions was the only additional contributing factor to a movement which had already begun in favour of trustee securities owing chiefly to the depression.

In the Industrial and Financial News, in advice to investors who regard the present as an opportune moment to weigh up chances of the earliest improvement in trade, points out that a recovery will first come from countries providing primary materials. It will be speediest in countries not embarrassed by political unrest or involved in national depression. Irf a list of countries which it suggests as likely ultimately to offer a field for profitable investment, the writer recommends them in the following order: Argentine, Canada, South Africa, Chile, New Zealand, Brazil, France, Sweden, United States, Denmark, Italy and Germany, significantly excluding Australia entirely.

EFFECT ON NEW ZEALAND. ME. W. J. POLSON IS OUTSPOKEN. STEATFOED, Last Night. “Australia’s position is so serious that it must have an indirect effect on New Zealand,” said Mr. W. J. Poison, M.P., in an interview to-day. “Public opinion cannot be too strongly directed to the necessity of profiting by Australia’s misfortune. We cannot afford to drift a single hour. We must put our house in order at, once. Australia has a colossal public debt, a balance of imp>orts over exports and high taxation. What great difference exists between her position and' New Zealand’s ? Let us face facts. We are balancing our budget by piling still higher taxation on this already over-burdened community instead of attempting to economise. Political courage and a strong policy are needed if we are not to be caught next year as Australia has been caught this year. If Sir Otto Niemeyer is right iri his summing up, the position of the primary producer not only in Australia but in New Zealand, calls for immediate consideration and statesmanship.” After setting out Sir Otto IJiemeycr’s conclusion, Mr. Poison proceeded: “This dark picture of Australia’s position may not interest thoughtless people, but can anyone say that the situation in New Zealand is very much better or likely to improve under the policy of piling up costs through tariff and adding to tax burden which is already uneconomic 1 Drastic and farreaching economics are called for. ‘This country exports nothing but primary and we have to export and maintain a balance of exports over imports that will pay our overseas interest bill if we are to retain a sound position. If world prices continue to fall and the primary producing goose fails to lay a golden egg. nothing will save New Zealand from a catastrophe not experienced since the ’sixties. We are caught in the cogs of a political machine which we cannot control and Parliament might sot about improving the situation. No party has backing enough to adopt radical remedies. The party spirit is too strong and the pres out Government cannot even tackle the job of reducing living costs, through tariff and putting substituted taxes on the shoulders of luxury users. Yet wc must apply these remedies, .however unpalatable, or suffer worse results and the sooner the country wakes up to the fact and insists upon its rulers acting instead of talking, the more lightly will we escape Australia’s fate. SYDNEY STOCK EXCHANGE. Eeceived Monday, 8 p.m. , SYDNEY, Aug. 25. Values fell away on Ihc Stock Exchange to-day and many stocks relapsed to new low levels. The market finished with a very weak tone and the supply of scrip available greatly exceeded the demand. , One desire to realise was more pro-

nouncod than for some time. Even preference stocks were out of favour. Bonds, however, are still steady.

SIB OTTO’S LITTLE JEST,

Reecivcd Monday, 9.5 p.m, ADELAIDE, Aug. 25,

Sir Otto Niemeyer was the guest of the South Australian Ministry at luncheon. He lightly referred to the three groat virtues in Australia—Amy Johnson, Don Bradman and himself and they had been likened, he said, to faith, hope and charity. He loft it to the company to decide whether the greatest of these was charity.

He added that if Australia were to maintain its place in the world, she must reduce costs and the sooner Australia entered the path of financial peace, the sooner would she overcome financial worries.