PLAYING WITH FIRE.

Taranaki Daily News, 22 November 1930, Page 6

PLAYING WITH FIRE.

The suggestion of the Commonwealth Statistician that the financial position in-Australia may bp improved by “restricted inflation” seems highly injudicious. Jt comes at a time when the friends of Australia arc being asked to give her help by subscribing tq a con? version loan that must be floated if the Commonwealth is to keep faith with its creditors. • Only last week the talk of inflation and postponement of repayment of principal by a section of the Labour Party caused almost a panic among holders of Australian stocks, and if needed the firmness pf the Prime Minister, M>'- ScuWin London and his deputy, Mr- Lyons, at Canberra to bring the recalcitrants to a sense of their responsibilities, The fact that sanity and honesty had triumphed caused a reaction in favour of Australia, and the prospects for the new Joan s success were distinctly bright. Now comes the advice of a highly placed executive, officer of the Commonwealth to try political action as an alleged remedy for un economic trouble. Like much quackery the proposition is superficially at-, tractive, especially to a political party that fears the wrath of its supporters if they are asked to share the burden with which Australia has loaded itself. The saner part of that nation realises there is only one way to wipe out debts, and that is by paying them at ‘the rate of twenty shillings to thepound. It realises too that as . things are the cost to the Commonwealth in making that payment will not be light, arrd it is prepared to accept a fair proportion of. the sacrifices that will be essential. What it asks further is that organised Labour shall do likewise; that in a time when the resources of Australia must be taxed to their limit if its credit is to be maintained wages and conditions of working shall be reviewed in the light of altered circumstances. So far there has been little indication that this is accepted by the trade unions. On the contrary there are already strikes and other protests against the few steps taken, in that direction, > the end of which it is not easy to foretell, ' Latest British advices Report a sympathy Xvith the .Australian Government in financial circles. It would be a thousand pities were, this disturbed by doctrinaire theories that even suggested a partial evasion of responsibility.