AUSTRALIA'S AWAKENING.

New Zealand Herald, Volume LXVII, Issue 20650, 23 August 1930, Page 11

AUSTRALIA'S AWAKENING.

FINANCIAL DEBAUCH ENDED

VISITING EXPERT'S WARNINGS OVERSEAS LOANS STOPPED. STOCK EXCHANGE REACTION. By Telegraph— Press Association—Copyright. (Received August 22. 10.45 p.hi.) SIDNEY. August 22. Australia is stirred and deeply concerned by Sir Otto Niemeyer's report, together with the drastic decisions at the Premiers' Conference and of the Loan Council. The whole subject is on everybody's lips. The majority of iho people are resigning themselves to the inevitable. The Evening News says: "The great 'boom, borrow and burst' debauch has ended. The bill is presented and we shall have to meet it. Sir Otto Niemeyer has said he has diagnosed the case aud has prescribed the medicine. We must ourselves administer the dose." The Loan Council lias undertaken to raise no further loans overseas until after tho existing oversea short-term indebted ness has been completely dealt with. Attempts will be made to eliminate the duplication of Commonwealth and State services.

Tho standing commitAe appointed at iho Melbourne conference is to watch the operations of the qomnion plan idea for tho rehabilitation of Australian finance. The Acting-Prime Minister, Mr. J. E. Fenton, announces that there is no intention at present of holding a special session of the Federal Parliament. As a result of the slump on tho Stock Exchange, some of tho Australian banks have already called up overdrafts made solely on tho security of stocks and shares, which policy has contributed in no small measure to the continued heavy selling pressure on tho Stock Exchange in the past few weeks. Commonwealth bonds, however, arc holding their own.

REVIEW OF POSITION. LIVING STANDARDS TOO HIGH SITUATION MUST BE FACED. MELBOURNE. August 22. Sir Otto Nicmeyer, addressing the Premiers' Conference, at which the Prime Minister, Mr. J. H. Scullin, and Sir Robert Gibson, chairman of the Commonwealth Bank, were present, reviewed the financial position. Sir Otto said:—"Australia is off the Budget equilibrium, off tho exchange equilibrium, and is faced by considerable unfunded maturing debts both internal and external, in addition to which she has on her hands a very large programme of loan works for which no financial provision has been made. "The only alleviation of the gloomy picture is that, apart from £36,000,000 of unfunded debt, Australia by a great piece of luck has no external maturities in 1950 and 1931. That means in effect that she has a maximum period of two years in which to put her house in order.

"Australia's credit is at a low ebb, on a 6 per cent, basis in Australia itself, and rather more abroad. It is, in fact, lower than that of any of the Dominions, not excluding India, and even lower than that of some protectorates. It is cejftain that the rate of increase of output per capita in other countries of recent years is much greater than in Australia." Sir Otto continued: "Australia could nob wish to remain for. ever under the regime of emergency tariffs and rationed exchange. She must emerge from that position and show signs of progress toward an emergence. Australian standards have been pushed too high relatively to Australian productivity and to general world conditions." If Australia did not face that issue, she would not be able to keep even those standards which she might hope to carry by taking timely action. The difficulty, he concluded, was no;!; beyond control, but demanded considered progress and united action and had to be squarely faced. The reduction of the loan programme affects New South Wales by about £5,500,000 in the current year, Tho Advisory Committee of Premiers and Treasurers will meet again next Thursday. It will bo in touch with Sir Otto Niemeyer. In the meantime the Premiers of South Australia, Western Australia and Tasmania have discussed the disabilities their States suffer, and will confer later when the effect of the present contemplated action becomes evident.

DECLINE IN STOCKS. MINING MARKET WEAKER. HEAVY FALLS IN SYDNEY. SYDNEY, August 22. The decline in tho prices of investment stocks on Sydney Exchange is very heavy. In tho mining market all sections weakened and investors are showing nervousness through realisation of tho critical position in tho country's finances. VIEWS OF LABOUR, SUGGESTION TO GOVERNMENT WAR DEBT REPUDIATION. SYDNEY. August 22. At a meeting of tho political and industrial Labour bodies at the Trades Hall, it was suggested that the Federal Government should dissociate itself from tho Premiers' Conference and, fust, declare a five years' moratorium on interest payable on oversea Government loans; secondly, repudiate all war debts; thirdly, mobilise tho credit of tho community for the purpose of providing work or sustenance for unemployed and for tho revival of industry.