AUSTRALIAN CRISIS

Manawatu Standard, Volume LI, Issue 70, 21 February 1931, Page 9

AUSTRALIAN CRISIS

FINANCIAL ILLS INCREASE. HOPELESS QUEST FOR WORK. SECESSION ON ALL SIDES. (United Press Association—By Electric Telegraph—Copyright). SYDNEY, Feb.. 20. Another week has passed without a solution being found for Australia’s financial ills, and so the terrible suspense goes on. More businesses fail and more companies go into liquidation. Empty shops become more numerous and big department stores grow more lifeless, while stark misery is written. in the faces of thousands of men, women, youths and girls, whose daily quest for employment in the big cities is’ both hopeless and pathetic. Never was the housewife’s plight more desperate; never was the landlord’s dilemma more acute. There is much loose talk of a revolt, but nobody seems capable of explaining what good purpose this will serve. The farmers of the northern and southern portions of New South Wales have already begun a revolt against the Lang administration, and from all accounts they will not rest until they have made three States of New South Wales. Similarly, Queensland and Western Australia desire to secede from the Federal Union largely on the ground that New South I Vales wields the dominating influence, and is capable, as in the present crisis, of much harm and suffering. These vents are now taking definite shape and may later compel the Government’ to grant a referendum on the specific question of secession. Thus, while all Australia is chafing, plans to extricate the Commonwealth from the financial morass are still in the melting pot. The conference of Premiers and Treasurers a week ago adopted a threeyear formula for rehabilitation, the conditions whereof gave consderable satisfaction, but since then the Federal Labour Caucus has decreed that the Government shall exploit Mr Theodore’s plan, which is alleged to savour of repudiation. New South AVales has its own special plan, which the Press describe as repudiation pure and on which policy it hopes to win the East Sydney by-election.

REDEMPTION OF LOAN. GOOD NEWS IN LONDON. Received February 21. 11.55 a.m. LONDON, Feb. 20. It is announced that the Commonwealth is paying off a short-term loan of £5,000,000 in Treasury bills on March 2. This has created a most favourable impression in the city as a welcome gesture against the repudiationists. It is also a useful tonic for investors who were fearing that default was imminent. There is the strictest secrecy as to where the money is being obtained from. Most people guess that it is the Bank of England. The effect of the news on the Stock Exchange was very satisfactory. It not only checked the decline in Australian stocks, but several showed an appreciable recovery. Dealings in Commonwealth 5 per cents, were recorded, ranging from £&4 to £66s; 6 per cents., £7O to £74. Victorian 5 per cents., £6l. New South Wales 3 per cents, £SO to £57; 5$ per cents., £75 to £76.

GOVERNMENT OF COUNTRY. M.P’s. CRITICISM. Received February 21, 10.5 a.m. SYDNEY, Feb. 21. Declaring that he was ashamed of the way tne country’s business was being conducted in Parliament, Mr Bate, a member of the State Legislative Assembly, said that the people should indicate how they wanted the country governed. If they permitted the present conditions to continue the result would be on their own heads. FINANCIAL CONFERENCE. POSTPONED UNTIL MONDAY. MELBOURNE, Feb. 20. Bankers from other States arrived in Melbourne yesterday to attend a conference convened by the Prime Minister on tlie financial situation. However. they received telegrams from Mr Scullin suggesting the postponement of the conference until Monday. RESULTS AWAITED WITH ANXIETY. FEELING IN LONDON. Received February 21, 8.5 a.m. LONDON Feb. 20. The Daily Telegraph’s City editor says • “The" result of the conference between Mr Scullin, Mr Theodore and representatives of the Australian banks is awaited with anxiety. The gulf between the parties appears to be unbridgeable.” The Financial News states that it begins to wonder whether the reaction in Australian stocks has not been allowed to go far enough. “Obviously Australia lias a long and weary convalescence ahead,” the paper adds, “but whether the pulse is beating ns weakly as the prices of stocks would indicate, is. open to doubt.”

TRADES UNION RESOLUTION. CANBERRA, Feb. 20. The resolution of the Australian Council of Trades Union asking the Federal Government to proclaim a state of national emergency was placed before the Federal Ministry to-day by a delegation from the Australian Council of Trades Unions. The Prime Minister, Mr J. H. Scullin, Mr E. G. Theodore, and Mr*F. Brennan received it and discussed the matter at length, after which Mr Scullin announced, that no action was possible along die lines suggested. N.S.W. BANK SHARES. SYDNEY, Feb. 20. On tlie Stock Exchange to-day. Bank of New South Wales shares were hard in an active market. Despite pressure from sellers this scrip found a ready sale at £27 ss. Regarding the shareholders’ further protest about the dividend being paid in Australian currency, officials of this bank are making no comment. The general manager at present is in Melbourne. Well-informed circles point out that the bank can make no differentiation in the amounts paid to shareholders, and are of the opinion that it is scarcely likely that New Zealand’s-protest will carry any weight. Business in bonds on ’Change is very restricted, and all issues show an easier tendency.