LABOUR CHOICE

Taranaki Daily News, 1 November 1930, Page 7

LABOUR CHOICE

A DOUBLE DISSOLUTION

- • ' A ■ \ ■ AUSTRALIAN ANTICIPATIONS

GENERAL‘ELECTION LIKELY

CREDIT IMPORTANT ISSUE

CHALLENGE TO THE BANKS

By Telegraph—Press Assn. —Copyright. Rec. 10.30 p.ni. Canberra, Oct. 31. It is reported in full confidence that the -Labour Party is going straight iljead for a double dissolution, the Senate and the House of Representatives, and a general election. The main issues will be the creation of credit and a challenge to the banks, which are allegedly “holding up the country and/ starving industry.” The only obstacle to the party’s progress is the Senate, which is largely anti-Labour. Sir George Pearce, Leader of the Opposition in the Senate, issued a statement on this subject today. He assured the thrifty citizens of Australia that the Senate could be relied upon to safeguard their savingsfrom legislative spoliation, and the Senate would not be deterred by threats of a double dissolution. He pointed out over 4,000,000 Australians had £200,000,000 deposited in the savings banks, apart from thousands who had deposits in the trading banks and had savings in insurance companies. Mr. T. R. Bavin to-day tendered the

resignation of his Government to the Governor, but agreed to carry on until 4 /the formation of Mr. Lang’s Ministry. Bond and share prices rose sharply bn exchange to-day, the, market developing considerable strength and a more optimistic tone prevailed as a result of the Federal Government’s compromise on the measures to : deal- with the financial drift. In addition to the new taxation proposals already announced the Federal caucus agreed to a 5 per cent, increase in the taxation on incomes from personal exertion exceeding £5OO, which is expected to yield £175,000.

REDUCTIONS IN SALARIES.

LABOUR CAUCUS DECISIONS.

Canberra, Oct. 31. The Federal Labour caucus has concluded its sittings. It agreed that persons in receipt of a regular salary from the Commonwealth Government be subject to a special super-tax. This amount will be 10 per cent, for those whose salaries are between £7'so and £l'ooo a, year, and 15 per cent, for those in receipt of more than £lOOO. Another means of assisting to balance the Budget will be the adjustment of certain Federal accounts in order to effect substantial savings. The caucus decisions represent a compromise between the original proposals submitted by Mr. Lyons and the demands of the militant section of the Labour Party. The chairman, Mr. 0. Bowden, addressing members of the Melbourne Stock Exchange, said one cause of Australia’s troubles was unquestionably the state of indecision and uncertainty which prevailed in trading and financial circles throughout the Commonwealth.! Any attempt at an artificial reduction of the interest rates would be fatal.

'“APPROACHING DECISIVE STAGE.”

“INFLATION MEANS DISASTER.”

London, Oct. 30.

The Financial News says that authorities in close touch with events in Australia believe that matters are rapidly approaching a decisive stage. The policy of releasing credits to help industry means, bluntly, inflation, which can only lead to disaster. It is becoming clearer daily that Mr. iScullin’s personal influence must be exerted-to the utmost if victory is to be secured for the principles of sound finance.