MMENTOUS CONFERENCE

Otago Daily Times, Issue 21359, 12 June 1931, Page 7

MMENTOUS CONFERENCE

AUSTRALIAN PREMIERS ' • j — — _ y I\N OF REHABILITATION TE SITTING CONCLUDED \ '** V . jUnited Press Association.) Telegraph-—Copyright.) M ' MELBOURNE, June 7 11. The’reriiiefs’ Conference, the most momeius in Australian history, ended after sitting .which lasted 13 days. It w decided to approach the banks to unoyrite a temporary advance of £8,500,1, to be made available at a rate Qt 1,000,000 a month to assist necessife wheat farmers and to relieve unemploent. Mr Lg again declared his intention to limitiblic servants’ salaries to £sop a year. airound sacrifices. ARAL BY MR SCULLIN. ■ MELBOURNE, June 11. The Pri Minister (Mr J. Hi Scullin), in summaing the conclusions reached at the Preirs’ Conference, declared that . as the wh plan of rehabilitation had , Been adop( all-round sacrifices would ' have to- bnide. The saving' of interest by e conversion loan should yield £6,5000. The deficits for the seven Austian Governments for the present fncial year would be £31,000,000 This would he reduced to £15,000) by various means, chiefly cuts in Gonment employees’ salaries, war, old aj and other pensions, and adjustments taxation.' He appealed to all sects to reconcile themselves to the situin, pointing out that unless the driwas stopped the’ Governments, earlji July, would be unable to -meet theohligations, which would result in i breakdown of public utilities'andsiness chaos, as the result of 'which noges or pensions would be available foinybody. On the other Band, whate reductions were made ,in private bmes would be largely counter-balai by the fall in the cost of living, thegtoration of employment, and the unainance of sustenance re- • lief;. v.-.; ■. -'j-

COMMERCI CIRCLES PLEASED. f " v \ vV 1 SYDNEY; June 11. (Receivedrie 11, at 11.30 p.m.) Commereiardes are pleased with the outcome of fPremiers’ Conference and they ’express * opinion that it should give an imme:e impetus to business as well as stabilAustraliari securities. So far no the plan had been Beard from ofll Labour, and assurances are hot lack of a popular response to the convert'loan. -

CONDITIO OF CONVERSION.

APPROVESY LOAN COUNCIL.

ILBOURNE, June 11. (Receiveune 12, at 1 a.m.)

The gencrahditioas of the conversion loan have be approved by the Loan Council and 3ers will be invited to convert their lings into hew stock, and

the eating securities will be iject to a general; ieduction of 22er cent, in the interest yield, exceptim the case of holders of 3,3 i, and 3gr cent stocks who acquired these ire August, 1915. The .. new secuiritiere to be restricted to three flat ratif per cent., SJ, and to be spread' over ten fixed maty dates, subject to the Government Ing the right to redeem them after Dnher, 1950. Existing securities amoing to £450,000,000 arid Bearing interest 5i per cent, and Over are to be coned into 4 per cent., at a premium. I general rule each holding is to be ad equally over the ten

maturity dates Conditions ialso laid down dealing frith ' existing[cnrities amounting to £45,000,000 a{61,000,000 respectively. The interest the. new securities will fee exempt f robe Commonwealth super tax of 7i pemt., but will be subject to other existifommonwealth and State taxation. Prcon is also made for the conversion ofx-free securities on a voluntary basj v , • . I • FEDERALOUSE ADJOURNS. ■ t . ANBERRA, June 11. f; ■ (Received le 11, at 11.30 p.m.) ■, In order tnable 'members of the Federal LabdParty to considef the decision of th'remiers’ Conference the Federal Pariint adjourned until pext Wednesday, j ■ f THE EERAL BUDGET. ' DOUBLi; OF SALES ffAX. ' ’ MBOURNE, June 11. • The proposed the various Governments submit to: the conference in * regard to buring for a reduction of i go p'er cent • made; available. ■ - Mr, Theodore’s But for next year anticipates a del of £4,380,000. The ' Budget provider the doubling of the sales tax (raise an additional £4,000,000, a;£2,400,000 in revenue ” is estimated fesult from the increase in the primarily by 6 per cent. A sum of £2,470 will be saved by debt conversion an 3,350,000 in reductions in invalid, olefe, and war pensions and maternity aiances; £1,700,000 in salary cuts, 00,000 in other adjustable expendit' and £1,500,000 is expected to beamed in increased in- ;> come tax.

The most Testing of the States’ Budgets outlt was that submitted by Mr Lang, whiticipates at the end of the year thahe operations of New South Waleall show a deficit of £5,410,000, ai allowing for a saving of £1,300,000 interest. £1,300,000 by salary reduce -and £2,000,000 by other adjust? expenditure, and the anticipated iitional revenue of £1,500,000 unthe proposed Transport Bill. V . _

Mr Lang sd <that his Government proposed to ice the salary of every person in itmploy to a maximum limit, of £SOO ear. This includes the Governor, thcdges, members of Parliament, andople holding statutory appointments; “It is not proposed, of course, to !g in legislation directly cutting the ries of those people to £500,” he sa “We will deal with them as we I with the bondholders. We will poinlt the position in which the country ds, itself and make a strong appem their patriotism and ask them to irn to the State all the money they jive in excess of £SOO a year. Sid they fail to respond we will thenve to introduce legislation similar tat which the conference proposes shote brought in to compel tax-free bonders to convert.”

The Victn Treasurer’s Budget estimate antites a deficit next year of £l,3lo,ooj»outh Australia anticipates a dt of £1,500,000, and Queensland ■ a deficit of £761,000. The Westernstralian deficit will be £1,200,000, I that of Tasmania £90,000.

COMMONWEALTH DEFICIT. INCREASE DURING MAY. CANBERRA, June 11. The monthly balance sheet issued under the Melbourne agreement shows that the Commonwealth deficit increased in May by £1,647,000 to £17,554,000. BRITISH PRESS COMMENT. (British Qfflclsl Wireless.) RUGBY, June 10. , (Received June 11, at 5.5 p.m.) The newspapers comment favourably on the decision taken by the Australian Premiers’ conference, by the Federal and State Governments, and by the leaders of the Federal Opposition. The Times says: ” Nothing would contribute more powerfully to restore the credit of Australia than the success iof the appeal which is now to be launched. It is a great sacrifice to ask, but Australians have never yet failed to respond to an appeal' to their patriotism.” The News says: “ They are practical steps, and both the economies themselves and the spirit which inspires them should do much to revive confidence in Australia’s future and relieve speedily the worst features of the situation.” ■The Daily Telegraph, in an editorial, says: “■ The Australian Premiers’ Conference has made financial history, and it,represents a supreme effort of statesmanship to overcome desperate difficulties by a wise decision to appeal for Voluntary conversion, The credit of Australia has been placed directly, in the hands of a large section of the public, upon,whose response the whole financial outlook in great degree depends, and no doubt they will realise that much more than their own immediate interests hangs upon the success of this great gesture of confidence in Australian patriotism.” PUBLIC SERVANTS’ SALARIES. MR LANG’S PROPOSAL APPROVED. SYDNEY, June 11. (Received June 12, at 1.15, a.m.) The New South - Wales Cabinet has approved the proposal to limit public servants’ salaries to £SOO a year. UNEMPLOYED RIOT IN SYDNEY. “DOWN WITH LANG GOVERN- , ■ ■ . MENT. , . v , : H SYDNEY, June 11. (Received June 11, at 9 p.m.) Two policemen held at Bay , 300 unemployed men who tried to storm Parliament: House this afternoon. The constables used their batons and one man received a severe head injury. The others were driven outside the gates, which were barred against them. The rioters shouted “ Down with the Lang Government,” and abused , the police, ; , The mob finally marched to the Trades Hall, where, they held a meeting, and inflammatory pamphlets were distributed, attacking th,e Premier, the Labour daily newspaper; and Mr “ Jock” Garden, secretary of the Labour Council. v VOLUNTARY CONVERSION PLAN. EFFECT ON STOCK EXCHANGE. LONDON/ June 10. The ! Stock Exchange immediately responded to the news of the voluntary conversion plan. Practically all Australian stocks were marked up five; ’•points. Actual dealings , were recorded in - Commonwealth s’s at £65 to £6B and •6’st at £77 to' £80;' Victorian s’s at £56, 4j- at £55 to' £SB; New South Wales '4’S at £6l to £6l 10s,/3’s at £SO to £sl, 5$ at £72 to £75, 6’s at £6O; Queensland s’s at £53 to - £6O, 3’s at £4O to £45; Tasmanian 3J at £55, 6£ at £B2. SYDNEY STOCK EXCHANGE’ " ATTITUDE OP CAUTION. , ; ' SYDNEY, June 11. (Received June 11, at 9 p.m.) The Stock Exchange is far from active owing to the uncertainty about the exact terms on which the existing loans are to be,.brought within the interna\ conversion scheme. . Thus an, attitude of caution is being displayed. However, the general economy plan evolved by the Premiers’ Conference is regarded, hopefully. DEALINGS IN NEW YORK. LARGE GAINS RECORDED. . NEW YORK, June 11. , (Received'June".'ll, at 9 p.m.) Responding actively to the favourable news that,an agreement had been reached by ' the Premiers* Conference oh the reduction 'of interest, Australian stocks showed large , gains on Exchange fo-day.