The Daily News THURSDAY, SEPTEMBER 25, 1930. FEDERAL FINANCE TANGLE.

Taranaki Daily News, 25 September 1930, Page 8

The Daily News THURSDAY, SEPTEMBER 25, 1930. FEDERAL FINANCE TANGLE.

The inexplicable manner in which leading men in Australia are facing the serious financial position appears to indicate that they are more concerned over the loss of prestige than with the efforts which must be made to place the finances of that Dominion on a sound and satisfactory basis. But for the deplorable attitude adopted by the representatives of Labour it would seem that most of the major difficulties in solving the acute problem would be overcome, though if tlie Leader of the Labour Party in New South Wales, Mr. J< T. Lang, is an average sample of leadership, the inference is that should the voice of that party prevail throughout the Commonwealth the present troubles would be c(uite insignificant in comparison to those •which must inevitably follow. In his policy speech at Auburn Mr. Lang went out of his way to speak in such outrageous terms of Sir Otto Neimeyer that an impartial observer might well consider the aim of his tirade was not merely to discredit this financial expert of outstanding ability, but more particularly to inflame the Labour Party as a whole with a view to treating Sir Otto’s sound and sensible advice-with supreme contempt. Although Labour is noted for its willingness to accept outside advice of j any kind, yet when it comes to a crisis affecting the well-being of such an important Dominion as Australia it would certainly occur to all sane people that the aid of a skilled financial physician should at least be treated with becoming respect. Sir Otto is no theorist, and instead of being actuated by any bias or unfriendliness towards Australia and its people, is, as the nature of his advice proved, actuated by a sincere desire to be of service in pointing out the policy which should* be pursued in order to overcome the financial difficulties with which that country is now faced. An object lesson pointing to the depth of the present situation was recently given in the Arbitration Court at Melbourne, when the chairman of the Railway Commissioners in the course of his evidence said that the Victorian Government was “broke” and did not know how to meet the pay-rolls: He added: “That is not an exaggeration, it is a fact. No. one will take the name of the Government on a piece of paper.’-’ It ’may be that Mr. Lang and those who support him are not aware that the Bank of England, which sent Sir Otto to Australia, is thoroughly acquainted with the whole position in that Dominion, having most reliable information, from special sources quite unknown to the Labour leader. ,He may not even be aware that what the controlling authorities of that bank decree will be followed by all the other banks, the object being to prevent a panic and overcome any threatened crisis. The wisdom and effectiveness of the exercise of that bank’s powers, backed up as they are by the British Government, have been proved on more than one occasion. It was in the same spirit of saving a serious crisis in Australia that Sir Otto Niemeyer was sent there —to help and not to hinder; to advise and not, as Mr. Lang asserted, to proclaim to the Premiers’ Conference “that unless Australia reduced the tariff and lowered the standard of living, London financial interests would take advantage of Australia’s temporary embarrassment to squeeze the country off the London money market,” and cause an unholy scramble by the Premiers to obey his dictates. They will certainly be wise to adhere firmly to that course. What does Mr. Lang propose by way of alternative? lie outlines a programme of expenditure of some £200,000,000 on all. sorts of works and guarantees, even to making the railways and tramways pay, regulating interest on mortgages, restoring the 44 hour week, solving the unemployment problem and maintaining wages. As to the means whereby the money is to be raised, he sweeps aside all hindrances to further borrowing by giving the Government a mandate to amend the financial flvrceniciit arrived at by the Pre-

miers. Needless to say such a mad rush to chaos did not appeal to the Treasurer, Mr. B. S. B. Stevens, who lost no time in emphasising the evident fact that Mr. Lang -1 >cs not understand or appreciate the gravity gI the crisis through which Auslralia is passing. The Premi ?r of New South Wales, Mr. Bavin, took a statesmanlike view of Sir Otto Niemeyer’s visit to Australia and the adverse criticisms in relation. After'explaining tlie exact position in that connection, he said: “It will certainly not adrl to the reputation of Australia either for courtesy or honesty i! Federal Ministers in order to placate sections of their own irresponsible and extremist supporters, try to evade responsibility for the presence of Sir Otto Niemeyer in Australia.” If his advice is acted upon it will save that great country from the fate of such a policy as that of Mr. Lang’s, aptly described as “boom, borrow, burst.”