GLOOMY OUTLOOK

Southland Times, Issue 21194, 22 September 1930, Page 7

GLOOMY OUTLOOK

AUSTRALIA’S PLIGHT POSSIBILITY OF A CRISIS FEDERAL CABINET CRITICIZED (United Press Atisn.~By Telegraph—Copyright.) Melbourne, September 20. The board of the Commonwealth Bank expressed the opinion that progress had been made by some States in regard to balancing their Budgets, but the Federal position was regarded as entirely unsatisfactory. The uncertainty .of the outlook is accentuating tne depression in business circies, and in some influential circles the opinion is held that the indecision of the Federal Cabinet Committee, which is exploring the situation, is unwittingly working up all the elements of a serious crisis. It is felt that if action is not taken shortly to inaugurate fair measures ot economy steps of a drastic nature may have to be taken lo prevent the national financial position drifting further into chaos. LOSS TO INVESTORS. Sydney, September 20. In an article in the Sydney Morning Herald, relating to investors’ losses as the result of reduced or deferred dividends owing to the financial stringency, the point is emphasized that certain sections of Labour would have the world believe that the workers alone are making undue sacrifices. The Herald publishes a list of 115 companies on the Stock Exchange whose dividends have -either been reduced, deferred or passed. Altogether the aggregate reductions involve a loss to shareholders over the year of £2,304,531, winch is equal to 3.78 pec cent, of the paid-up capital of £60,849,304 represented by the share issues. The recent downward tendency in shares on the Exchange has been accentuated in consequence of the announcement of extra taxation contemplated by the Federal authorities. Many stocks have touched new low levels. A SPIRITED APPEAL AUSTRALIA’S CAUSE SPONSORED BY NEWSPAPER. REMINDER TO BRITISH FINANCIERS. (Rec. 11.23 p.m.) London, September 20. The Daily Express in a column leader entitled “The Truth About Australia: What She Did for the Empire,” declares: “Here’s a continent whose inevitable development will amply repay whatever money is devoted thereto. What are our bankers thinking of? Australia, who fought for the Empire tigerlike, presents herself at theii counters. They examine her requests for assistance with a microscope, yet make loans to enemy countries with open hearts and purses full. Let us remember what Australia did in the greatest _ crisis the Empire ever faced. The debt is unrepayable in cash, and if every financial obligation was cancelled we in Britain still owe our Australian kinsmen perpetuity of gratitude and admiration for ever. The British public simply won’t stand having Australian problems assessed in cold terms of pounds, shillings and pence.” OBJECT OF SIR OTTO NIEMEYER’S VISIT. NOT GOVERNMENT’S GUEST. (Rec. 5.5 p.m.) Sydney, September 21. Speaking at Condobolin, the Hon. A. Blakeley, Minister for Home Affairs, denied that Sir Otto Niemeyer came to Australia at the invitation of the Commonwealth Government. The fact was that the Bank of England suggested to the Government that they should send a representative here with a view to taking over the overdraft of the Commonwealth Bank and Westminster Bank, London. Mr Blakeley added that Labour had not and would not endorse Sir Otto Niemeyer’s proposals to reduce the standard of living in Australia to that of England with its two millions of unemployed. Mr Ceasely, assistant-Minister of Industries, made a similar declaration at Queanbeyan and added that financial interests abroad did not desire that the secondary industries in Australia should be developed. They desired that Australia should remain merely a Crown colony producing raw materials for manufacturers abroad. Labour was certainly not going to allow that. INCREASED TAXATION INEVITABLE. Melbourne, September 20. Mr Fenton reiterated his opinion that increased taxation was inevitable. “Even with all our reductions there must be further taxation. We are not going to put any extra burden on industry,” he said. N.S.W. LEGISLATIVE ASSEMBLY DISSOLVED. Sydney, September 20. A proclamation has been issued dissolving the Legislative Assembly. The writs for a General Election will be issued on Monday. AFFILIATION WITH LABOUR REJECTED. Sydney, September 20. A proposal to affiliate with the Australian Labour Party was rejected after an animated debate by the New South Wales Railway and Tramway Officers’ Association. A delegate who supported the motion said it was only from the Labour Party that members could hope for better conditions.