INFLATION CONDEMNED

Taranaki Daily News, 14 January 1931, Page 7

INFLATION CONDEMNED

STRONG COMMENT BY PRESS EXTREMISTS REND CABINET SENATE PROVIDES CHECK ITS APPROVAL UNLIKELY By Telegraph—Press Assn.— Copyright. Rec. 10 p.m. Sydney, Jan. 13. The Press bitterly condemns that section of the Labour Party which is aiming at inflation. The News says: Were there no traitors in the Prime Minister’s camp the attempt could not be made, while default abroad and starvation at home would drive the famished people to bloodshed and rapine. The Sydney Morning Herald directs attention to the ills of inflation, particularly to .the working man. It says: There certainly must be reconstruction in the Federal Cabinet, for the extremists within the Ministry have rent the Cabinet as well as the party. The whole country will await with the keenest anxiety Mr. Scullin’s answer to this impudent challenge. Mr. J. G. Latham, leader of the Federal Opposition, to-day said inflation could only become operative with the approval of the anti-Labour majority in the Senate, which was quite unlikely, and with the approval of the Commonwealth Bank, the laws of which could be amended only with the consent of the Senate.

Mr. Scullin had several telephone conversations to-day with Labour friends in Sydney concerning the Labour conference’s decision on inflation, and he received assurances that neither the Australian Labour Party’s Sydney branch nor the New South Wales Federal members desired to impose any conditions upon him on the subject of finance when he opened the Labour campaign at the Parkes by-election on Thursday. Mr. Scullin added that any restriction upon his utterances could not be tolerated. Therefore, whatever policy he enunciated would be his financial policy, not that of anybody linked with the Labour movement. “I shall define what I conceive to be the best course for the present critical times,” he said. It was reported to-night that as a result of mediation by Victorian Labour officials, the Prime Minister, las been assured that the inflation battle cry will be eliminated from the Parkes by-election campaign. Acknowledging a cordial welcome home by the Australian Association of British Manufacturers to-day, Mr. Scullin assured the gathering that he would be able to show a way to the Australian people, not a roseate way, perhaps, wherein all must co-operate and help the country back to prosperity. STOCK HOLDERS ANXIOUS. MR. SCULLIN’S MOVE AWAITED. London, January 12. Holders of Australian securities are awaiting the outcome of the conference between Mr. Seullin and the Australian Labour Party, says the Morning Post. The recent falls in the stock are not ordinary fluctuations, but reflect the real anxiety on the part of trustees and other holders inspired by the growing recognition that Labour legislation in Australia has produced unsound conditions. It is hoped that Mr. Scullin will withstand all pressure, in which case Australian securities will recover and will come into prominence in due course. The Financial News says that stockbrokers are inundated with inquiries from investors wishing to know what to do with their Australian holdings on the Stock Exchange. They generally express the opinion that the course of prices will depend on the political situation, and that while a vociferous minority is hustling sane Australian opinion, credit will continue at a serious discount, and holders will' have to gamble on the final victory of moderate Labour. If Australia makes a real attempt to put her house in order friends _ in Britain will quickly come to her assistance. Australian stocks are further depressed and sales were a record. The average prices are:— Commonwealth 5 per cent., £7O. Commonwealth 6 per cent., £B4 10s. Victorian 3J per cents., £5O. Victorian 5 per cents., £66 ss. New South Wales 3 per cents, £6l los. New South Wales 6 per cents., £75 los. Queensland 5 per cents., £65 ss. Queensland 6 per cents., £B2 10s. South Australian 6J per cents., £BO. Tasmanian 3| per cents., £65. Tasmanian 64 per cents., £B3. West Australian 3 per cents., £73. West Australian 6 per cents., £BO. “MAY APPROVE MILD INFLATION.” IMPRESSION OF MR. SCULLIN. Melbourne, January 13. Two impressions formed by those in' close touch with Mi-. Scullin since his return are that he may advocate a mild form of inflation with certain limitations and safeguards, and that he would welcome the return to the Treasury benches of Mr. Theodore.