INTEREST DEFAULT

Nelson Evening Mail, Volume LXIV, 30 March 1931, Page 5

INTEREST DEFAULT

LANG CABINET’S INTENTION SINKING PARTY CONSIDERATIONS MR BAVIN’S APPEAL (United Press Association— By Electric Telegraph—Copyright) SYDNEY, 28th March. Mr Bavin, Leader of the State Opposition, commenting on Mr Lang s proposed default, said that all party considerations should be sunk iu a joint endeavour to save the Stale. “The announcement that the Government docs not intend to pay interest due in London on 31st March brings us to the verge of a crisis which most of us had been anticipating as the result of the Government's policy. The consequences cannot be fully foreseen, but undoubtedly they will be serious.

“The Premier pleads consideration for the unemployed, but one of the first results of bis deplorable action will be that soon all chance of finding money for relief work, . even to save people from starvation, will be destroyed. “One of the worst features is the proposal to meet indebtedness to America, while repudiating obligation to British bondholders. It is hardly conceivable that the supporters of the Government would agree to such discrimination.”

LONDON COMMENT EFFECT OF DECISION LONDON, 27th March. Mr H. T. Price, a resident of Sydney, informs the Australian Press Agency, that one effect of Mr Lang’s decision is the collapse in the negotiations of a £600,000 -company which was on the point of completion. The company intended to develop valuable textiles, combining wool and cotton from cellulose and also paper from straw in the Riverina district.

Evening newspapers feature Mr Lang’s announcement that New South Wales is not paying interest due at the end of the month. The effect is shown on the Stock Exchange where there lias been a further depression oil Australian securities.

The Australian Press Agency is authoritatively informed that* all the other States with impending loan obligations have definitely provided for payment. LONDON, 28th March. “The Times” city editor, citing the growing steadiness of Australian securities after the slump, regrets that the Commonwealth Government did not avoid damage to Australia’s credit due to Mr Lang’s reckless decision by announcing immediately on his intimation that it would ensure payments being made.

WALL STREET VIEW PREVENTION OF DEFAULT NEW YORK, 28tff March. The “New York Times” financial editor says: “Although there is no general opinion on the subject of what price on a given foreign bond issue indicates probable default, it lias been noted in recent mouths that when the issue goes below 50 default is taken for granted. The belief is current in Wall _ Street that the 1929 agreement providing for the use of Commonwealth funds to prevent New South Wales default in interest covers the present situation. ’ In the bond market on Saturday the issues of the Australian Commonwealth Government and New South Wales recovered further on reports that the former would assume the liabilities of the latter, and that interest on dollar bonds of the Federal Government probably would not be defaulted. Queensland Sixes and sevens and City of Sydney five and a half bonds lost ground on a few sales.

A COMMONWEALTH PARTY SUGGESTION BY MR LYONS POLICY OUTLINED MELBOURNE, 29th March. Mr Lyons invited the leaders of all political' parties and ordinary citizens to sink their differences and unite to form a true Commonwealth Party to restore external and internal credit by reestablishing the integrity of Government finance. His policy includes no indirect repudiation of national obligations by, debasing currency and the preservation of currency from political control ; restoration of a balanced budget on the basis of equality of sacrifice, to he pvogressingly effected as the financial capacity of the community permits; deduction of Government expenditure to reasonable correspondence with the fall in national income ; tariff preference to Britain and inter-dominion reciprocity; encouragement of productive enterprise ; securing the re-employment ol the people ; immediate assistance to the man on the land with real money. Mr Lyons said : “My mates and I have been always Labour men. _ We have no party to-day. Conscience impelled ns to transfer allegiance from the party we have long served to the people of Australia because so many ( of them are m dire and dreadful need.” Bankers and others approve of the P °M? Bruce welcomes the proposals and promises assistance. He adds that the people must concentrate on returning men of character to Parliament to give effect to such a policy.

STATE PARLIAMENTS ABOLITION REFERENDUM RUMOUR IN SYDNEY SYDNEY, 29th March. A rumour is current that Mr Scullin contemplates suggesting to the Federal Labour Conference a referendum oil the abolition of State Parliaments. Details are kept secret, hut it is believed Mr Scullin and Mr Theodore are anxious to find something likely to appeal to the electors if their votes are to he sought at an early date.

ALL-FOR-AUSTRALIA LEAGUE OWN POLITICAL MOVEMENT SYDNEY, 291 h March. Eight, hundred delegates attended the AU-for-Australia. League Convention at the Town Hall, representing all classes of city and country people. Unusual precautions were taken to prevent the entry of any bent- upon wrecking the proceedings, which were marked by Ireo spoken criticisms on the failure of past and present political parties to give tho best service to the country. The convention was asked to determine whether the league should accept political responsibility by supporting individual candidates arguing its aims, or establish its own political movement. Wide divergence of views on these points was apparent. A suggestion that the league meet Mr Lyons ami the Nationalist and Country party leaders to discuss a united policy to retrieve Australia’s position was 'not recei-ed with a.ny great tavour. The convention passed a resolution by 598 votes to 40 to create its own political movement. The provisional presi-

dent, Mr A. J. Gibson, forecasting the possible future of the league, .th'ought steps should be taken to revise the State and Federal Constitutions, and bring them into conformity with present day requirements. They must consider how the power of the State could be curbed to prevent repudiation of national finance, the tariff, and the Arbitration Court. These were things of outstanding importance, causing division among the people, which must be remedied. The league was not Fascist, but the watchdog of the nation s interests. The Federal Labour Conference t in planning a new Labour Party for New South Wales will not recognise any branch that fails to fall in behind Mr Scullin.

LABOUR SPLIT TWO PARTIES (Received 30th March, 9.50 a.m.) SYDNEY, This Day. The “Labour Daily” says that two Labour parties, one tied to the ScullinTheodore policies, and the other advocating the Lang plan, will contest constituencies against each other when the next Federal elections, now looming, come on. Tile conference requested the directors of Labour Newspapers Ltd. (“The World”) to consider immediately the I'ublieati on of a daily paper which will advocate the Theodore propaganda.