AUSTRALIA’S DEBTS

Otago Daily Times, Issue 21363, 17 June 1931, Page 7

AUSTRALIA’S DEBTS

BILLS MATURING IN LONDON PAYMENT IN GOLD PROPOSED PORTION OF THE RESERVE | . | (United Press Association.) (B; Electric Telegraph—Copyright.) ‘ LONDON, June 15. (Received June 16, at 7 p.m.) A message from Melbourne states that the Commonwealth Government has decided to. introduce legislation authorising the shipment of £5,000,000 in gold to meet Treasury bills which mature in London at the end of June. It is understood that the measure will empower the Treasury ,to ship any portion of the ■ gold reserve, which now amounts to £15,000,000. The Daily Telegraph’s city editor infers that - since the gold consignment cannot- reach London by June 30 funds will be. made available to meet the bills and temporary credits will be liquidated in gold." • —— ; ■ LEGISLATION BEING DRAFTED. ' CANBERRA, June 10. (Received June 16, at 9 p.m.) New • legislation for meeting the £5,000,000 worth of Treasury bills which are dno in London on June 30 is being drafted, and it is understood that the proposal is to'ship upward of £5,000,000 worth of gold. The new Bill differs from the previous one rejected by the Senate, Which gave the Treasurer the power to ship the whole of the gold reserve if he thought fit. . ■ ■■ ?. ’" ■ ' THE ECONOMY PLAN. DISTASTEFUL BUT INEVITABLE. w;'. • V . CANBERRA, June 16. ;(Received June 16, at 8 p.m.) .The Prime Minister (Mr J. H. Scullih) has written to Mr E. J. Holloway, Baying :v“ The. economies to which you object are quite as distasteful to every other member of Parliament, but we have to recognise that they arc unavoidable. The Treasury figures disclose that unless we take steps to meet tile posi- ■. tion the Commonwealth will not be able to pay 12s in the £. Therefore it is a question of arithmetic, not of argument, since default will mean that pensioners , and. public servants, with whom you so ’much sympathise, will receive nothing at all. We cannot escape the grim fact that reductions arc inevitable.” T Mr E. J. Holloway, who was assistant Minister of Industry in the Federal Ministry, resigned, being strongly opposed to the Premiers’ Conference economy plan. He wrote a letter to the Prime Minister saying that he had no sym: pathy with the reduction ■in pensions, and he believes the only way to revive the Australian position was by the issue of fresh credit through the National Bank. >/■ ' 1 1 GOVERNMENT’S DIFFICULTIES. SYDNEY, June 16. The Sydney Morning Herald says; “ Although the Federal Government will find it impossible to give legislative effect to the economy programme agreed to by the Premiers’ Conference without the support of the Opposition, a coalition of the United Australian Party and that section of . the Labour Party led by Mr .Scullin is .uplikely. Federal Labour members are unanimous in expressing the opinion that there: is sr'ub possibility of such <a’ fuaibnl ' It is admitted., ,however, that the Ministry will be helpless, without the. aid of the Opposition, and in the event of the cleavage between the majority and minority factions of the Labour caucus' becoming more pronounced a political crisis involving the resignation of the Government will be inevitable within aix weeks unless a working arrangement is made with the followers of Mr Lyons.” NEW SOUTH WALES CABINET. MR LYSAGHT’S RESIGNATION. SYDNEY, June 16. Although the Attorney-general (Mr A. A. Lysaght) has resigned from the Ministry, he will remain a member of the Labour Party. Mr,Lang subsequently stated that the resignation was consequent upon an incident that occurred in the Assembly on Wednesday last, when the Chief Justice’s name was brought into the controversy. The Premier declined to offer any further explanation or comment. The Minister of Justice (Mr Lamaro) will probably be given the portfolio of Attorney-general. This will necessitate ■ a reshuffle of portfolios. In political circles it is stated that the Law Reform Bill will probably now be jettisoned.

FUNDS FOR HOSPITALS. NEW SOUTH WALES LOTTERY. SYDNEY, June 16. (Received June 16, at 9 p.m.) The Lang Government has decided to establish without further delay a State lottery in aid of hospitals and other charities.