CANNOT REPUDIATE DEBTS

Taranaki Daily News, 29 August 1930, Page 9

CANNOT REPUDIATE DEBTS

EXPERT WARNS AUSTRALIA OWN PEOPLE WOULD SUFFER SECURITIES NOW POPULAR —i By Telegraph—Press Assn.—Copyright. Rec. 8 p.m. Adelaide, August 28. Professor Gregory, a member of Sir Otto Niemeyer’s financial mission, to-day said it would be impossible for Australia to repudiate its external obligations without at the same time repudiating the internal. The owners of great blocks of Australian Government securities were either the people themselves or insurance companies, and to some extent Australian banks, particularly the Savings Banks. Thus repudiation would mean the Australian people themselves would suffer. Upon his arrival at Sydney to-day from Adelaide Professor Gregory declared that if Australia repudiated its foreign debts the London bondholders would probably organise and begin action for recovery "There is a council of foreign bondholders in London to protect the rights of bondholders in cases of this sort,” he added. Professor Gregory will sail for England via New Zealand and America aboard the Ulimaroa to-morrow. Sir Otto Neimeyer will remain here a couple of weeks longer. Government securities are now in popular demand on the Sydney Exchange. Holders are not anxious to sell except at enhanced prices. Six issues recorded advances to-day of Is 3d to ss. SOBERING EFFECT ON HOT HEADS FEATURING REPUDIATION MOVE. London, Aug. 27. The Australian Press cablegram recording the Daily Telegraph’s featuring of the repudiation resolution brought a series of lengthy replies from Australia. The Daily Telegraph’s own correspondent, in the course of a dispatch, emphasised that the resolution was confined to the New South Wales Labour Council, at which the Australian Workers’ Union and Miners/ Federation were not represented. The Daily Telegraph to-day displays this mossage with the headings: "Australians and Financial Crisis —New South Wales Labour Move Denounced —Only Extremists Behind it—Cabinet’s Policy Unshaken.” The message adds: "The Daily Telegraph’s serious viewpoint is likely to have* a sobering effect on the Labour hot-heads and to encourage the moderates to rally to the support of the Federal Government.”

The Sydney Morning Herald says the Lang faction in the Australian Labour Party fears that talk of repudiation of war debts and of the financial agreement may adversely affect the party’s prospects at the State elections. Its efforts to secure a rejection of the labour committee’s demand threaten to cause a epl it in the State Labour movement. The acting-Fcderal Treasurer, Mr. J. A. Lyons, speaking at Burnie, said the suggestion for repudiation of debts could not be entertained for a moment. SEVERE SACRIFICE ENTAILED. BALANCING STATES’ BUDGETS. Sydney, Aug. 28. The Premier of Western Australia, Sir James Mitchell, explained to his Parliament how the Premiers’ conference conclusions affected State finances. One of these was that no money could be expended until it was received. This would entail severe sacrifices. The New South Wales Government is reviewing the estimates to be presented to tne impending session. It expects to balance the ledger in every department, except in the railways which, at the rate of losses at present mounting, will show a deficit of £4,000,000 sterling. LABOUR OPINION DIVIDED. ISSUE AT COMING ELECTIONS. Rec. 1 a.m. Sydney, Aug. 28. The New-South Wales Labour Council to-night endorsed the war debt repudiation policy, but moderate Labour opinion outside New South Wales is overwhelmingly opposed to it. It is highly probable that the approaching State election will be fought on this issue.