DEBTS IN AUSTRALIA.

New Zealand Herald, Volume LXVII, Issue 20720, 13 November 1930, Page 11

DEBTS IN AUSTRALIA.

MEETING MATURING STOCK.

£28,000,000 CONVERSION LOAN.

NEW SOUTH WALES AGREES.

OPTIONAL TERMS PROPOSED. By Telegraph—Press Association—Copyright CANBERRA. Nov. 12. The official report of the meeting of (he Federal Loan Council states that the council approved of the raising of loans of £28,000,000,. of which £18,600.000 is for the Commonwealth, and £9.400,000 for all the States. The Premier of New South Wales, Mr. ,T. T. Lang, moved that as (he council had failed to provide for carrying on public works in New South Wales, the States should be allowed to borrow for themselves. The Premier of South Australia, Mr. L. L. Hill, moved as an amendment that it was not constitutionally possible to agree to Mr. Lang's motion and this amendment was carried. A feature of the meeting was Mr. Lang's agreement to Mr. ,T. A. Lyons' plans to float the conversion loan of £28,000,000, subscribers being offered the option of stock bearing interest at 6 per cent, for two years, 5J per cent, for 10 years, or 5£ per cent, for 20 years. The decision was unanimous, although Mr. Lang early in the discussion expressed a desire to withdraw from (he council, taking with him his share of (he loan, about £4,000.000. His motion that all future loans should be subject (o Slate and Federal income tax was defeated by six votes to one. It was explained that the purpose of the two years' quotation at 6 per cent, for the loan was to enable advantage to be taken of some American capital now tied up in Australia owing to the exchange rales. Statement by Mr. Lang. Mr. Lang, in expressing his desire to withdraw from the council, stressed the point that he had received a mandate from the people of New South Wales to pursue an independent course. He contended that it was now obvious that the Loan Council was no longer able to give New South Wales the money it needed and be therefore should be given permission lo arrange his own loans. Unemployment and distress were serious in his State, and this justified an attempt tjO take the quickest and most effective means to afford relief. If permission were refused. Ihat would not affect (he determination of his Government to raise the money independently. This statement was received by members of the council with considerable feeling. The Queensland Treasurer, Mr. W. H. Barnes, said Mr. Lang's request should be resisted, mainly because while New South Wales might benefit the other States would suffer. Mr. Hill's Amendment Carried. The Federal acting-Treasurer, Mr. J. A. Lyons, said the Loan Council in the present circumstances was a national necessity. Its past inability to secure sufficient, funds was not due to any fault of the council, but to lack of money. Mr. Hill, in opposing Mr. Lang's motion for his State's withdrawal, then moved his amendment that the committee had no power to agree to this course constitutionally, and this was carried. Tho council decided that the question of imposing State taxation on interest from all Commonwealth loans raised after July 1. 1931, should be discussed at the next meeting and that any action taken was not to apply to the present conversion loan. - It was stated at a late.hour that New South Wales had withdrawn from the Melbourne financial agreement and the Standing Committee. MR. SCULLIN PLEASED. GOOD EFFECT IN LONDON. STOCKS RISE ON EXCHANGELONDON. Nov. 11. The Prime Minister of Australia, Mr. J. H. Scullin, says the decision of the Loan Council io proceed with a conversion loan on Mr. .7. A. Lyons' terms will be well received in London, and will react. to Australia's advantage. " I spoke to Mr. Lyons to-day," be said. "He was as glad to hear my voice as I was to hear his. He is carrying a heavy responsibility and facing his task manfully." On the Stock Exchange to-dav Commonwealth Government stocks again hardened. Dealings in the 5 per cents, ranged from £BO to £B3 and in 6 per cents, from £B9 10s to £92. Prices of the States' stocks were mostly unchanged.

MEETING OF CAUCUS. COMMITMENTS TO BE MET. MR. ANSTEY'S MOTION LAPSES. (Received November 12, 8.35 p.m.) CANBERRA, Nov. 12. The Federal Labour caucus held a brief meeting to-day. -An oflicial report says a motion was unanimously carried denying any association with debt repudiation and declaring the intention of the party faithfully to discharge all its lawful commitments. , A motion to recommit 'Mr. K Anstey s motion to instruct the Government to legislate to defer payment to bondholders in the £27.000,000 loans for 12 months was not moved. The position now is that Mr. Anstey's motion remains uncancelled, but no action in regard to it will be taken. BANKER'S HOPE. BALANCING OF BUDGETS. TROUBLE MAY PROVE BLESSING. (Received November I'2. 10.-15 p.m.) LONDON, Nov. 12. At the annual meeting of the English, Scottish and Australian Bank, Limited, the chairman, Mr. Andrew Williamson, said the bank's prosperity was interlinked with Australia's prosperity, therefore the present conditions must adversely affect its earnings in the current year. However, lie hoped that by careful administration the directors would be able to present a satisfactory report at the next meetinc. If the resolutions passed at the conference with Sir Otto Niemeyer in Melbourne were faithfully carried out and the Australian Government?' Budgets balanced, then to-day's acute trouble might yet prove a rich blessing to Australia's future.