NEEDS OF AUSTRALIA.

New Zealand Herald, Volume LXVIII, Issue 20793, 9 February 1931, Page 11

NEEDS OF AUSTRALIA.

EXPERTS' PROPOSALS.

DRASTIC STATE ECONOMIES.

DEFAULT THE ALTERNATIVE

INFLATION CONDEMNED.

REDUCTION OF COSTS.

By Telegraph—Press Association—Copyright. (Received Fobruary 8, 5.5 p.m.) CANBERRA, Feb. 8.

A reduction of £15,000,000 a year in Government expenditure is the basis of the three years' plan drawn up by the committee of experts, to restore Australian prosperity. " Tho alternative," the experts say, "is default in the Government's payments, the evils of which would be immeasurably greater than the hardship which the nation would be asked to face."

Inflation is strongly condemned. This is not the road to recovery, but to collapse, they say. The reduction of interest rates by the savings banks is also a possible means of bringing about a fall in interest charges. Pensions of all kinds should be revised and made the subject of close examination.

The curtailment of road expenditure is imperative.

Employment must be made profitable, and all obstacles to a reduction of costs must be removed. COMMENT IN LONDON. EFFECT ON INVESTORS. STOCK MARKET PRICES. (Received February 8, 7.15 p.m.) LONDON, Feb. 7. The London newspapers yesterday and to-day published gloomy cablegrams from Australian correspondents with reference to the developments at Canberra. Comment is mostly withheld pending definite news of the decisions of the conference. The financial editor of the Morning Post says the prices of Australian stocks did nob change, in spite of the favourable trade balance. Later came news of the Premiers' Conference at Canberra. It would be unwise to jump at conclusions from the cabled summary, he says, bub ib almosb seems as if the Prims Minister, Mr. J. H. Scullin, has joined the Labour extremists in scouting the bankers' advice. News of tlm breakdown of the conference and tl\o implication of a possible collision between the Commonwealth and the State Governments and the Arbitration Court did not have a reassuring effect on English investors.

LOAN OF £6,000,000.

AID FOR WHEAT GROWERS. DECISION OF LOAN COUNCIL. (Received February 8, 5.5 p.m.)_ CANBERRA. Feb. 8. The Federal Loan Council has approved of the immediate raising of a loan of £6,000,000 to aid the wheatgrowers. Of tho total £3,500,000 will be applied to the bounty of 6d a bushel on wheal exported in the 1930-31 season. The balance will be available to tho States to help necessitous farmers.