DEBT REPUDIATION PLAN

Taranaki Daily News, 1 September 1930, Page 7

DEBT REPUDIATION PLAN

BRITISH PRESS COMMENT

WOULD GOVERNMENT DARE? PAST 'TROUBLES OVERCOME ‘ 1 CEN TRAL BANK REQ HIRED ’ ’ By Telegraph—Press Assn.— Copyright. Rec. 5.5 p.m. London, Aug. 30. “The Sydney Labour executive's proposal that Mr. J. H. Scullin should appeal to Britain for a readjustment of the war debt raises a veiy giave issue,” says the News-Chronicle editorially. “Wc greatly doubt whether anv British Government dare accede to such a request. Britain is up against hard tidies, with no prospect of recovery. “Unlike Australia wc have kept on the rails in national finances but we simply cannot go on playing the fairy grandmother, even to our own kith and kin. During the war Australia, treated its fighting forces with lavish generosity, and in the matter of debt we have ’ treated Australia with real consideration. The proposal means that now it is no longer possible for Australia to borrow we should present her with a substantial gift. That, is not Sir Otto Niemeyer’s remedy.” Commending Australia’s adoption of Sir Otto Niemeyer’s plans, the Economist newspaper comments on the earlier difficulties of Australia and New Zealand from 1878 onwards. The solution of each had' brought improvements in the banking policy till now they were in the soundest position. The time was ripe for another advance in the direction of a central bank in each of the Dominions, linked with the Bank of England, thus preventing a crisis such as 'the present, notably by forestalling exchange difficulties. recommendation by labour. NO ACTION ON REPUDIATION. Sydney, Aug. 30. The report of the political industrial committee recommending the repudiation of war debts has been submitted to the;Australiq.n Labour Party executive, which has neither adopted nor rejected it. . The- executive instead earned a motion the effect of which was to advocate a reduction of the war loans interest and to call on Mr. Scullin to negotiate for the readjustment of war debts. The abolition of the Loan Council was advocated. Mr. W. J. Duggan, president of the Australian Council of Trades Unions, questioned yesterday about the repudiation of overseas debts, replied: “Nobody outside a lunatic asylum takes the New South Wales Labourites’ proposals seriously.” REPAYMENT OF WAR DEBTS. COMPARISON OF DOMINIONS. By Telegraph—Press Assn.—Copyright. London, Aug. 29. Blue Book shows that in the year ended March 31 Australia repaid £1,460.000 principal off war loans, and £4,088.000 interest, compared with New Zealand’s £405.000 and £1,340,000 respectively and South Africa’s £2,071,000 and £395,000. Tl. outstanding war loan indebtedness'on March 31,“embracing book debts and bonds, was:—

Australia '£81,298,000 New Zealand £26,838,000 ■South Africa £7,500,000. The two former debte are being paid off in anriui.ties.