Australia’s Financial Ills

Nelson Evening Mail, Volume LXIV, 21 February 1931, Page 7

Australia’s Financial Ills

TERRIBLE SUSPENSE CONTINUES HOPELESS AND PATHETIC QUEST FOR EMPLOYMENT WILL SCULLIN MINISTRY SURVIVE ?

(United Press Association—By Electric Telegraph—Copyright)

SYDNEY, 20th February. Another week has passed without a solution being found for Australia’s financial ills and so the terrible suspense goes on. More businesses fail, more companies go into liquidation, empty shops become more numerous, big department stores grow more lifeless, while stark misery is written on the faces of thousands of men and women, youths and girls whose daily quest for employment in big cities is both hopeless and pathetic. Never was the housewifes’ plight more desperate. ' Never was the landlord's dilemma more acute. There is much loose talk of revolt, hut nobody seems capable of explaining what good purpose tins would serve. Farmers in the northern and southern portions of New South Wales have already begun to revolt against the Lang Administration and from all accounts 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 oil the ground that New South Wales wields a dominating influence, capable, as in the present crisis, of much harm and suffering. These events arc now taking definite shape and may later compel the Government to grant a referendum on the spedific 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 the three-vear formula for rehabilitation, the conditions of which gave considerable satisfaction, hut since then the Federal Labour Caucus has decreed that the Government shall exploit Air Theodore’s plan, which is alleged to savour of repudiation. New South Wales has its own special plan which the press describes as repudiation pure and unadulterated oil which policy it hopes to win East Sydney by-election. Confusion having arisen as to the meaning of the. Caucus decree, Mr Seullin hastened to explain to-day that the Caucus approved the negotiations now going on between himself and Mr Theodore and the banks and authorised them to continue those negotiations. This declaration has removed apprehension that what the Caucus desired was the adoption of the Theodore proposal for restoration of the 1929 currency levels. The House of Representatives meets on 4th March hv when the Prime Minister should be able to gauge the measure of support he is likely to receive from his parly. The “Sun” representative at Canberra says the chief question is no longer what- legislation the Seullin Government will submit to Parliament hut whether it will survive the inevitable no-confidence motion. He adds that the Ministry can no longer count definitely upon the support of the majority of members of the House. Mr Lyons, Mi Fenton (ex-Ministers) and possibly Mr McGrath will probably cross the floor. Mr Lyons says lie is disturbed and disgusted. The party is hopelessly divided. When one section indicates u plan of reconstruction it becomes a target for another. “I do not wish to see the party hopelessly split, hut whatever action I take I shall place tho country first.” Other Labour Federal members declare that confidence in the Prime .Minister has completely broken down. Movements are on foot throughout Australia at the present moment, directed towards restoration of Australia s political integrity and financial stability. Big meetings have been held at

Sydney, Melbourne, and in South Australia and Queensland and the Citizens’ Leagues formed which arc hound to exercise a telling influence on present and future Governments.

STATE OF NATIONAL EMERGENCY ACTION NOT POSSIBLE PRIME .MINISTER'S REPLY TO T.U.C. CANBERRA, 19th February. The resolution of tho Australian Council of Trades Unions asking the Federal Government to proclaim a state of national emergency, was placed before the Federal Ministry to-day by a delegation from tho Australian Council of Trades Unions. The Prime Minister, Mr Theodore and Air Brennan received it and discussed the matter at length, after which Mr Seullin announced that no action was possible along the lines suggested. BANKERS’ CONFERENCE POSTPONED TILL MONDAY MELBOURNE, 20th February. The Bankers’ Conference is to he held to-morrow (Saturday). Later. Bankers from other States arrived at Melbourne yesterday to attend a conference convened hv the Prime Minister on the financial situation, only to receive telegrams from Air Seullin suggesting the postponement of the conference till Monday.

ANXIETY IN LONDON BANK CONFERENCE RESULT LONDON, 20th February. The “Daily Telegraph’s” city editor says the result of the conference of Air Seullin and Mr Theodore and representatives of Australian hanking is being awaited with anxiety. The gulf between the parties appears to be unbridgeable. Tho attitude of the banks is not only comprehensible hut necessary, having regard to their obligations to depositors. REACTION GONE FAR ENOUGH LONDON, 19th February. The “Financial News” begins to wonder whether the reaction in Australian stocks has not been allowed to go far enough. Obviously Australia has a long, weary convalescence ahead, hut whether her pulse is heating as weakly as the. prices of stocks is open to doubt.

N.S. WALES LANG FINANCIAL PLAN ENDORSED BY LABOUR CAUCUS SYDNEY, 20th February. Ah- Baddeley, deputy leader of the State Ministry, states in the absence of Mr Lang, who is ill, that the Labour Caucus endorsed the Lang financial plan, which the Ministry hitherto approved.

(Full details of the proposals submitted to the Premiers’ Conference at Canberra by Air Lang, advocating repudiation and abandonment of the gold standard, appear on page 8 of this issue.)