AUSTRALIA’S CRISIS

Sun (Auckland), Volume IV, Issue 1022, 12 July 1930, Page 9

AUSTRALIA’S CRISIS

LABOUR REPLIES TO SENATE’S VETO BUDGET CAUSES ALARM Reed. 10.45 a.m. CANBERRA, Fri. The Federal Government’s reply to the Senate’s action in referring to a Select Committee the Bill to create a central reserve bank is to withdraw its representatives on the Select Committee appointed by the Senate to investigate the Bill. The Prime Minister, Mr. J. H. Scullin, says he regards the action of the Senate as tantamount to the rejection of the Bill, which he will again bring before the House of Representatives early next year. The “Sydney Morning Herald” says It is generally thought in political circles there that a crisis must arise early nevt year when the Parliamentary session is resumed after the return of Mr. Scullln from the Imperial Conference. This is the result of the treatment given by the Senate to several Government proposals. COMMERCE DEPRESSED SCULLIN URGED TO BORROW SYDNEY. Friday. A crowded meeting of members of the Sydney Chamber of Commerce vigorously condemned the proposed new taxation and tariff changes, and passed a resolution expressing the view that unemployment would be seriously increased. The meeting also expressed the hope that the Government would try to borrow sufficient money to balance the Budget, instead of compelling trade and industry to meet the deficiency in a single year. The meeting urged that the Government should consult with leading representatives of finance and commerce, While leading industrial securities were firmer on the Sydney Stock Exchange today, the selling pressure not being heavy, the market otherwise continued its downward tendency. Bank of New South Wales shares showed further weakness, falling by 7s 6d to £37 7s 6d, and Union Bank fell 2s 6d to £ll 10s. Commonwealth loans were quiet and irregular. EFFECT UPON STATES ' ADELAIDE, Friday. The Premier of South Australia, Mr L Hill, has written to the Prime Minister, Mr. J. H. Scullin, explaining the serious effects of the Federal Budget, which will place Sou-th Australia in a very awkward position. Mr. Hill estimates that the cost of federation to his State is at least £5,000,000 a year.