AUSTRALIAN FINANCE

Otago Daily Times, Issue 21266, 21 February 1931, Page 13

AUSTRALIAN FINANCE

THE THEODORE PLAN. NATIONALISATION OF BANKS. APPROVED BY LABOUR CAUCUS. (United Press Association.) (By Electric Telegraph—Copyright.) CANBERRA, February 10. The following resolution, approving of the Theodore financial plan, was carried by the Federal caucus to-day:— “That this party approves of the Commonwealth Government continuing negotiations with the banks on the lines laid down by the Prime Minister and Mr Theodore, and in the event of these negotiations failing the Government is hereby instructed to proceed to secure Legislative power to give effect to the party’s platform in regard to banking and currency.” This plan aims at the nationalisation of banking. POLICY OF REPUDIATION. CIVIL WAR A POSSIBILITY. SYDNEY, February 20. The Sydney Morning Herald, replying to Mr Lang editorially, says:—“There is nothing in the article complained of which could be interpreted as inciting to civil war, but it is true that civil war, as a possibility arising out of Mr Lang’s policy of repudiation and implied secession, is in the minds of many thoughtful people, who fear that there will be a serious risk of it if the present Labour Government drives the majority of the population of New South Wales to desperation.” But, if violence comes, the Herald says, it will not be due to the majority of the honest citizens who oppose Mr Lang, but through the exacerbated fury of his own followers, who find themselves duped by his promises and foiled in their senseless, selfish,' short-sighted purposes. Just as a collision may be inevitable on a railway through disregarding signals, so the trend of Mr Lang’s policy is moving people to expressions of alarm, and definite discussions arising out of anxiety. This is a fact, and we do not need to include the extremists in the rival «amps, who would welcome trouble for the opportunities of personal aggrandisement and making political capital at the moment. It is enough to say that fear of grave trouble is in Aien’s minds, because secessions in history have been a fruitful cause of domestic conflict. We refuse to believe that the worst will happen if the best elements get together and work harmoniously for the State. Brazen promises unfulfilled, and never intended to, be fulfilled, have led us into the slough of despond in which we are struggling. The reaction thereto promises safety, not in civil war, but in wholehearted co-operation to make Mr Lang’s continued tenure of office impossible. NORTHERN NEW SOUTH WALES. AGITATION FOR NEW STATE. SYDNEY, February 20. The movement to form a new State in Northern New South Wales is spreading rapidly in the districts affected. Advocates stress the fact that no unconstitutional action is contemplated. Public feeling will be thoroughly tested by a referendum or a petition to the Federal Parliament. If the latter does not act an appeal will be made to the British Government on the grounds of misgoyernment. The New South Wales Riverina is also in a ferment, and indignation is expressed at Mr Lang’s repudiation suggestions. The district is likely to co-operate in the northern new State agitation. JUDGES IN VICTORIA. VOLUNTARY CUT IN SALARIES. MELBOURNE, February 20. The State Supreme Court judges informed the Premier that they desired to contribute 10 per cent, reduction in their salaries towards balancing the Budget. The offer has been accepted. QUEENSLAND’S HONOUR. REPUDIATION OPPOSED. SYDNEY, February 20. Mr Gorfrey Morgan, the Queensland Minister of Railways, who was interviewed at Sydney, said there was a growing feeling iii the north in favour of secession from the federation, “We are watching the position closely. It would appear that if Mr Lang’s financial scheme is given effect to we would be better*off on our own. The question of secession lias been freely discussed by the Queensland Cabinet, and, though no decision has been reached, the constitutional position in the event of secession is being investigated. Queensland as a State is strenuously opposed to any scheme of repudiation of debts. It is the only State that lias attempted to carry out the Niemeyer recommendations, and, though the Budget might not be actually balanced this year, Queensland’s finances are certainly in a better position than those of some of the sister States. If Mr Lang’s proposals are carried, the sooner we get out the better. We will not have Queensland reduced to the level of Now South Wales in the eyes of the world.” UNEMPLOYED IN SYDNEY. - “RED ARMY” REFORMED. SYDNEY, February 10. A large number of unemployed met in the Trades Hall to-day and reformed the Workers’ Defence Corps, otherwise the “ Red Army.” The speakers emphasised the need for readiness owing to the receipt of information that the Capitalist class, was arming to defend their wealthy possessions. CONFERENCE OF BANKERS. POSTPONED TILL MONDAY. MELBOURNE, February 20. (Received Feb. 20, at 11 p.m.) Bankers from other States arrived in Melbourne yesterday to attend the conference convened by the Prime Minister on the financial situation, only to receive telegrams from Mr Scullin suggesting postponement of the conference till Monday. THE TRADES UNION CONGRESS. MR GARDEN IN HIS ELEMENT. SYDNEY, February 20. Mr J. S. Garden, addressing the Australian Council of Trades Unions Congress, declared that neither he nor Mr Lang had any faith in Mr -Scullin, Mr Theodore, or their supporters, who were neither bold nor courageous. The time had come for all the workers to rally to the banner, which must inevitably strike at the heart of the existing financial machine. He felt sure the present situation was only a lull before a storm, which would be,of such a nature as to surprise the world.

The delegate from Melbourne exclaimed that the proclamation of a state of national emergency would cause an uprising of the Nationalists, who were ready with arms and ammunition to defend the Capitalist class. AUSTRALIA’S WAR DEBT. FINANCIAL TIMES COMMENT. LONDON, February 19. “Australia is paying on her war debt less than the actual cost of the money to tho British taxpayer,” says the Financial Times in an editorial. “ Should any amelioration prove possible it would be on the grounds of sympathy, not on right.” Contending that the analogy of the United States settlement is incomplete, the paper says; “ The most that can legitimately be read thereinto is that Australia, having fallen upon evil times, should receive every consideration con-; sistent with the necessities of a creditor who is also encountering difficulties, remembering that the other debtor dominions might be aggrieved by the exclusion of similar privilege treatment.” A STATE OF EMERGENCY. TRADES UNIONS’ REQUEST. CANBERRA, February 20. (Received Feb. 20, at 11.30 p.m.) The resolution of the Australian Council of Trades Unions asking the Federal Government to proclaim a state of national emergency was placed before the Federal Ministry to-day by a delegation from the Australian Council of Trades Unions. The Prime Minister, Mr Theodore, and Mr Brennan received it and discussed the matter at length, after which Mr Scullin announced that no action was possible along the lines suggested. SYDNEY STOCK EXCHANGE. BANK SHARES HARD. SYDNEY, February 20. (Received Feb. 20, at 11 p.m.) On the Stock Exchange to-day Bank of New Smith Wales shares were hard in an active market. Despite pressure from sellers this scrip found a ready sale at £27 ss. „ Bearding the further protest by shareholders about the dividend being paid in Australian currency, officials of this bank are making no comment. The general manager is at present in Melbourne attending Mr Theodore’s financial conference. Well-in-formed circles point; out that the bank

can make no differentiation in the amounts paid to shareholders, and are of the opinion that it is scarcely likely that the New Zealand protest will carry any weight. Business in bonds on ’Change is very restricted, and all issues show an easier tendency. A LONG CONVALESCENCE AHEAD. LONDON, February 20. (Received Feb. 20, at 11.45 p.m.) • The Financial News begins to wonder whether the reaction in Australian stocks has not been allowed to go far enough. Obviously Australia has a long, weary convalescence ahead, but whether her pulse is beating as weakly as the prices of her stocks suggest is open to doubt.” AUSTRALIA’S ILLS. SOLUTION NOT YET FOUND. WHOLE POSITION REVIEWED. SYDNEY, .February 20. (Received Feb. 21, at 2 a.m.) Another week has passed without a solution being found for Australia’s financial ills, and so the terrible suspense goes on. More businesses fail, more com. panics go into liquidation, empty shops become more numerous, and big department stores grow more lifeless, while stark misery is written on the faces of thousands 'of men, women, youths, and girls whose daily quest for employment in the big cities is both hopeless and pathetic. Never was the housewife’s plight more desperate; never was the landlord’s dilemma more acute. There is much loose talk of revolts, but nobody seems capable of explaining what good purpose this would serve. The farmers in the northern and southern portions of New South Wales have already begun to revolt against the Lang administration, and from all accounts they will not rest until they have made three States of New South Wales. Similarly Queensland and Western Australia desire to secede from the Federal Union largely on the ground that New South Wales wields a dominating influence which is capable, as in the present crisis, of much harm and suffering. These events are now taking definite shape, and may later compel the Government to grant a referendum on the specific question of secession. Thus while all Australia is chafing, plans to extricate the Commonwealth from a financial morass are still in the melting pot. The conference of Premiers and Treasurers a week ago 'adopted a three-year formula for rehabilitation, the conditions of which gave considerable satisfaction, but since then the Federal Labour caucus has decreed that the Government shall exploit Mr Theodore’s plan, which is alleged to savour of repudiation. New South Wales has its own special plan, which the press describes as repudiation pure and unadulterated, on which policy Labour hopes to win the East Sydney by-elec-tion. Confusion having arisen as to the meaning of the caucus decree, Mr Scullin hastened to explain to-day that the caucus approved of the negotiations which were now going on between himself, Mr Theodore, and the banks, and authorised them to continue those negotiations. This declaration removed an apprehension that what the caucus desired was the adoption of Mr Theodore’s proposal for restoration of the 1929 currency levels.

The House of Representatives will meet on March 4, by which date the Prime Minister should be able to gauge the measure of support he i c likely to receive from his party. The Sun representative at Canberra sa v o that the chief question is no longer what legislation the, Scullin Government will submit to Parliament, but whether it will survive the inevitable no-confi-dence motion. He adds that the Ministry can no longer count definitely upon the support of a majority of the members of the House. Messrs Lyons andFenton, and possibly Mr M'Grath, will cross the floor. Mr Lyons says he is disturbed and disgusted. The party is hopelessly divided, and when one section indicates a plan for reconstruction it becomes the target for another section. “ I do not wish to see the party hopelessly split, but whatever action 1 take I shall place the country first.” Other Labour Federal members declare • that their confidence in the Prime Minister has completely broken down. Proposals are on foot throughout Australia at the present moment directed towards restoration of Australia’s political integrity and financial stability. Big meetings have been held in Sydney and Melbourne, and in South Australia and Queensland citizens’ leagues have been formed, which are bound to exercise a telling influence on the present and future Governments.