POSITION IN AUSTRALIA

Otago Daily Times, Issue 21254, 7 February 1931, Page 11

POSITION IN AUSTRALIA

OVERSEAS TRADE RETURNS. EXPORTS EXCEED IMPORTS. (United Press Association.) (By Electric Telegraph—Copyright.) SYDNEY, February C. The figures of Australia’s oversea trade for the first six months of the financial year disclose an excess of exports over imports, being £11,893,055, compared with an excess of imports of £14,594,847 for the corresponding period last year. The exports of gold, however, were considerably heavier. ASSISTANCE FOR FARMERS. THE GOVERNMENT’S PLAN. SYDNEY, February 0. The Pictorial says that the Federal Government’s plan to assist the wheat growers is now completed. A special farmers’ relief loan of £5,000,000 will be placed on the Australian market. The money will be disbursed to farmers in the form of a bonus per bushel. It is intended to bring their return to the vicinity of 3s per bushel. They will not have to repay the money. THE THREE-YEAR PLAN. CANBERRA CONFERENCE. STATEMENT BY MR SCULLIN. SYDNEY, February 0. (Received Feb. 7, at 0.45 a.m.) Although Australians have been diverted temporarily from their troubles by the deplorable happenings this week in the Dominion, they are again beginning to wonder when the heavy pall of depression which hangs over the Commonwealth will show signs of lifting. Every Government in every State is looking to the Commonwealth Government for a lead, and every citizen in every State awaits anxiously some tangible pronouncements which will afford work for bread winners and relief from the 'intolerable economic depression which threatens to develop into something more sinister. Action by the Commonwealth Government in the direction desired was begun early this week at Canberra with a conference between the Prime Minister, the Treasurer and the chairman of the Commonwealth Bank. Their conversations were concluded yesterday and now a conference of Premiers and Treasurers has begun at the Federal capital to consider the three-year plan for the financial rehabilitation of the Commonwealth. Reports which are arriving from Canberra indicate that there has already been a hitch, both Mr Scullin and Mr Lang declaring that they would not consider any plan which involved a reduction of wages or the standard of living. The Prime Minister, addressing the conference on the national finances, reviewed the heavy fall in exports and the terrific growth in unemployment. He said that the Governments of the States and of the Commonwealth were faced with the task of meeting a very serious budgetary position. He estimated that the Commonwealth deficit for 1930-31 would be £10,000,000, and in the States £5,000,000, He feared that the position, following a year on the basis of the present conditions, would be even worse. .... Mr Scullin emphasised the point that, although the Commonwealth Government was a party to the Niemeyer agreement, by which the Budgets must be balanced, it had been impossible to honour the agreement owing to the immense decline in Customs and excise revenue and other sources. The task to which they had set themselves was too great for immediate accomplishment. The Federal Government’s commitments for the year were as follow: — Interest and sinking fund, £23,000,000 War, invalid, and old age pension, £20,000,000. Defence, £3,000,000. Payments to States, £12,500,000. Public utilities, £11,000,000 Ordinary departments, miscellaneous services, £6,500,000. Total, £75,000,000. Turning to the Government’s loan debts, Mr Scullin said that the short term indebtedness of the Commonwealth and the States by way of overdrafts and Treasury bills at the end of this month was estimated at £55,500,000, of which £38,000,000 was owed in London and the remainder in Australia. At the present rate of exchange the problem of meeting overseas liabilities involved the payment of an extra £10,000,000. Mr Scullin said that the conference should turn its attention to a reduction of the interest rate on future loans, and he added that the essential need at the moment was a revival of industry in order to provide work, which would materially lighten the task of restoring Budget equilibrium. Shortly after the conference got down to business the Prime Minister astonished delegations by declaring that the report of the committee of financial experts which drew up a plan for submission to the conference had no right to make recommendations. The committee was merely required to collect data and statistics for the information of those present. AN OFFICIAL SUMMARY. ■ SYDNEY, February 6. (Received Jan. 7, at 1 a.m.) Following is the official summary of the Commonwealth and States’ heavy financial obligations, totalling £374,000,000, during the next three years:— Maturing debts, £160,000,000. Treasury bills in London, £10,000,000. Short term indebtedness in London, £30,000,000. Short term indebtedness in Australia, £9,000,000. Interest bill in London for three period, £82,000,000. Interest bill in Australia for the same years, £82,800,000. Well informed circles say it will be impossible to repay the loans out of the funds derived from additional taxation, therefore further borrowing will be necessary, which will be possible only by the restoration of Australia’s credit and lower rates of interest.