AUSTRALIAN FINANCE

Otago Witness, Issue 3995, 7 October 1930, Page 48

AUSTRALIAN FINANCE

SOUTH AUSTRALIA’S PLIGHT.

WORST FOR NINETY YEARS. ADELAIDE, September 30.

The Auditor-general’s annual report describes South Australia’s financial crisis ns the worst since 1840. The losses on the railways operations for the year amounted to £1,796,000, making the accumulated losses since July, 1927, £4,196,000. The number of unemployed in 1927 was 2162, while the number now Is over 15,000. The State is losing oy emigration nearly 6000 annually. SIR OTTO NIEMEYER’S VISIIT. ACTING MINISTER’S CRITICISM. SYDNEY, October 1. The Acting Minister of Industry (Mr Beasley), speaking at the Glebe Town Hall, attacked Sir Otto Niemeyer, who, he said, had exceeded the courtesies Australia had extended to him by interfering in her domestic affairs. The time had come to denounce him and the conditions that he was trying to impose on the Commonwealth, making self-government a farce and Parliament an out-lived institution.

Mr Beasley indicated that the attempt to balance the Budget would be abandoned temporarily. He promised emphatically that no Cabinet action would be taken to reduce salaries oi pensions. It is simultaneously reported from Melbourne that the Federal Ministry will submit to the caucus for endorsement its proposals for a reduction of salaries of the Commonwealth Ministers by 15 per cent., parliamentary salaries by 10 per cent., a reduction of salaries of Federal public servants on a graduated scale ranging from 24 to 124 per cent., new xation increases on all incomes which are not derived from personal exertion, increased probate and succession duties, increased excise duties, and a revision of the sales tax to exclude many of the existing exemptions.

NONSENSE MERITS NO REPLY. CANBERRA, October 4.

Sir Otto Niemeyer, commenting on ihe attacks made on him by Mr Lang, Mr Beasley, and others, said: “I do not propose to reply to that sort of nonsense.”

FEDERAL REVENUE. DEFICIENCY FOR THREE MONTHS. CANBERRA, October 1. The Federal revenue returns for the first three months of the financial year already disclose a deficiency of £3,000,000, causing the Ministry the greatest concern. The loss of Customs revenue is practically at the rate of £10,000,000 per year, and the postal revenue is £421,686 below the estimate. BALANCING THE BUDGET. PROPOSALS BEFORE CABINET. CANBERRA, October 2. Consideration of the financial position and proposals for balancing the Budget have been commenced by the Cabinet. No definite decisions have been reached. The State revenue returns for September, in Victoria, South and Western Australia, and in Queensland, show further large decreases compared with the corresponding month last year.

THE PROPOSALS APPROVED. CANBERRA, October 2.

The Federal Cabinet decided that the Federal Parliament should be called together on October 30. The Acting Prime Minister (Mr Fenton), in making this announcement to-day, said that the proposals to balance the Budget had been approved by Cabinet, which has agreed to reduce the expenditure by £4,000,000 a year.

A CHEERFUL NOTE SOUNDED. MELBOURNE, October 2.

Mr C. H. Tranter, chairman of the associated banks, sounded a cheerful note to-day when he declared that the people only required to deny themselves a few things and adjust themselves to new conditions and their- economic difficulties would soon disappear. Healthy deposits held by the banks were the best indication of Australia’s solvency. He added that it was the wrong time to sell stocks, and his advice to those who were worried about the falling market was to lock the bonds and the scrip in their safes and throw away the keys. QUEENSLAND BUDGET. INTRODUCED IN ASSEMBLY. BRISBANE, October 3. The Budget was introduced in the Assembly. It provides for increases in the income tax, the succession duty, and the duty on betting tickets. The Treasurer (Mr Barnes) said that a surplus of £3268 was expected. CIVIL SERVANTS’ SALARIES. CUT IN SOUTH AUSTRALIA ADELAIDE, October 3. The Premier (Mr Hill) stated that the Deductions in the civil service salaries

would be on a sliding scale. The average would be 10 per cent. They take effect on October - 18.

MEAT BOARD ECONOMIES.

VOLUNTARY CUT IN SALARIES. SYDNEY, October 3.

The Metropolitan Meat Board announces a 50 per cent, reduction on fees at the Flemington sheep and cattle yards. Stock owners will thus reap a saving of upwards of £12,000 annually. The board members voluntarily cut their own salaries, and wherever possible effected economies.

BOND AND SHARE PRICES.

SHARP RISE ON ’CHANGE. SYDNEY, October 3.

Bond and share prices rose sharply on ’Change to-day as the result of the better tone induced by the Federal Government’s intention to reduce expenditure. Investors operated with more confidence, and bank shares reacted strongly. Commercial of Sydney, for instance, jumped from £l7 3s to £lB 15s. Reports from Melbourne contain similar features.

BOARD OF WORKS LOAN. MELBOURNE, October 4. In marked contrast to the last issue, the loan of £500,000 issued by the Metropolitan Board of Works was largely under-subscribed. Subscriptions closed with only £226,300 received.

GALVANISED IRON IMPORTS.

PRACTICALLY PROHIBITED. CANBERRA, October 3

The Federal Government, yielding to pressure from local manufacturers, agreed completely to prohibit the importation of galvanised iron, except by the consent of the Minister. The present bounty of £3 3s per ton will, however, be withdrawn.

THE RAILWAY SERVICES.

COURT SETS AWARDS ASIDE.

MELBOURNE, October 5.

The full bench of the Commonwealth Arbitration Court set aside all railway awards covered by the applications of the railway commissioners, except so far as relates to the basic wage and standard hours. . It is announced that the unions intend to appeal. Mr Justice Beeby, in the same court, suspended the award of builders’ labourers and carpenters so far as it affects the Government departments. Chief Justice Dethridge said that in a time of crisis necessity may present a hard choice to employees, either to give up promptly some award conditions or to see the industry collapse, with consequent greater loss to them and greater injury to the public interest. This was the kind of public interest to which the court must always pay regard. Mr Justice Beeby expressed the hope that the parties would earnestly seek agreements to tide them over the next 18 months.