WAR DEBT REPUDIATION

Taranaki Daily News, 28 August 1930, Page 11

WAR DEBT REPUDIATION

LABOUR BREACH FORECAST CRITICISM OF EXTREMISTS “WILL PREJUDICE CREDIT” By Telegraph—Press Assn.—Copyright. Rec. 7.15 pun. Sydney, August 27. "If the Labour movement throughout Australia endorses the war debts repudia* tion ultimatum of the New South Wales militants last night, a breach between the Labour Party and its Federal leader is inevitable,” says the* Sydney Sun. Mr. Scullin’s last recorded speech before sailing for London contained this statement: Repudiation suggests a default that would be. calamitous to the whole structure of the present system and would throw nearly a million people out of work. Such a suggestion could not be tolerated.’ Mr. J. E. Fenton, acting-Prime Minister, to-day said: “We have no intention of repudiating the agreement reached at the Melbourne conference of Premiers oh •finance. My Government has concurred in the conference resolutions and we shall at all costs stand by that agreement.” The acting-Prime Minister added that the repudiation resolutions could not be taken seriously as they emanated from a coterie of irresponsibles, but he deprecated the action of newspaper correspondents. in cabling them to London. Such action would seriously prejudice Australia’s credit abroad. POLITICAL CRISIS FEARED LABOUR EXTREMISTS CRITICISED. CANNOT FLOUT ECONOMIC-LAWS. Rec. 7 p.m. London, Aug. 26. The New South Wales Trade Union Council’s resolutions in favour’ of the repudiation of war debts and for a moratorium which have been cabled' from Australia have had an unfortunate effect, causing a balanced morning newspaper like the Daily Telegraph to feature’ the message under .doublecoloumn headings. Then the. paper gives the terms of the resolutions. The whole is calculated to give unwarranted importance to the matter. Commenting editorially on the New South Wales Labourites’ resolution in favour of the repudiation of war debts, the Daily Telegraph declares: "If Mr. Scullin’s majority in the House of Representatives renounces his leadership a grave political crisis might arise. As for the demand for repudiation this is too shameful, to be taken more seriously than as an emotional symptom. But the violence of reaction, to proposals involving a sacrifice cannot be regarded without anxiety by debenture holders.” “The Australian Labour Government accepted with a good grace the unpalatable truths set forth in Sir Otto Niemeyer’s diagnosis,” says the Morning Post, “'but, while the responsible leaders are showing readiness to comply with the dictates of wisdom, menacing tones are issuing from their extreme followers. “The conference of the industrial and political wings of the New South Wales Labour Government demands cutting , the Gordian knot by the repudiation 'of the war debt and a moratorium on the service of overseas Government loans. Neither Governments nor demagogues can flout the inexorable behests of economic laws any more than they can deflect’ the stars from (heir .course.” EFFECT OF PREMIERS’ MEETING. FEDERAL PRESTIGE ENHANCED. Rec. 7 p.m. London.' Aug. 25. A well-informed authority in civise touch with Australian financial circles states; “Consideration has been given to the whole question of short-term-ni-debtednese. It was felt in view of the existing conditions, on the money market that a renewal issue would oe advantageous. The prestige of' Australian obligations has been markedly enhanced by the resolutions passed at the meeting of the Premiers’ Conference last week. “The result of this, together with the credits pooling scheme, must be a revival of confidence in the Australian situation. Generally. this is already manifest in a marked improvement in the prices of Australian stocks.”