AUSTRALIA’S NEED

Otago Daily Times, Issue 21385, 13 July 1931, Page 7

AUSTRALIA’S NEED

LONG TERM FINANCE BRITISH PRESS COMMENT THE BUDGET REASSURING (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, July 11. (Received July 12, at 5.5 p.m.) The newspapers regard the Commonwealth Budget as reassuring and indicating that the Australians are prepared to make the necessary sacrifices to rehabilitate the financial position. The Financial Times says: “ Britain undoubtedly recognises that Australia needs long term finance and is ready to extend it directly positive evidence is adduced that the days of undue uncertainty and risk are past.” NEW SOUTH WALES CRISIS. REFLECTED ON STOCK EXCHANGE. . SYDNEY, July 12. (Received July 12, at 7 p.m.) As a result of the New South Wales political crisis and the heavy increase in Federal taxation, business on the stock exchanges is practically at a standstill. Bank shares are easier and the Union Bank’s reduced dividend gave the market a shock, while a rather marked recession occurred in Bank of Australasia shares. Sales were recorded during the week down to £ll 15s, and New Zealand selling orders are now on the Sydney market. Commonwealth bond values are irregular. CHILD ENDOWMENT TAX. AN INCREASE CONTEMPLATED. SYDNEY, July 11. Mr Lang informed the Labour caucus that the Government will introduce a Bill next week to increase the child endowment tax from 1 to 2 per cent. The tax will apply to employers within the State whose employees are engaged under Federal awards. These were previously exempted. The yield from the tax will be increased from £600,000 to £2,000,000. The endowment fund has been overdrawn by £1,500,000.