MR. SCULLIN COMPROMISES

Taranaki Daily News, 15 January 1931, Page 7

MR. SCULLIN COMPROMISES

THE POLICY OF INFLATION TO SPEAK AT PARKES POLLS WILL IT BE CAPITULATION? By Telegraph—Press Assn. —Copyright. Sydney, Jan. 14. The Herald says that as the result ,of yesterday’s telephone conversations Mr. Scullin has indicated his preparedness to compromise with the State Labour leaders and the New South Wales section of the Federal Parliamentary Labour Party on their demands for an inflation policy. He will speak in the Parkes by-election practically in conformity with the policy of the inflationists. In some Labour quarters the •concessions they expect from Mr. Scullin are regarded as a capitulation.

GREAT ANXIETY IN LONDON.

INVESTORS’ FEAR ACCENTUATED.

London, Jan. 13.

Since extreme Labour’s ultimatum te Mr. Scullin that he must agree to inflation British investors’ anxiety has been accentuated as the recent marking down in securities indicates. To day news from Sydney that Mr. Scullin had notified that he would speak in the Parkes electorate “on a policy of inflation” has intensified misgivings and dispelled the effect of Mr. Scullin’s courageous words when he landed at Fremantle.

The city is awaiting with the tensest anxiety Mr. Scullin’s appearance at Parkes and his first encounter with the caucus. There is a strong feeling that it is the occasion for him to grasp the nettle and tell the caucus that inflation would inevitably lead to disaster. A leading banker commented: “If Mr. Scullin is unable to induce approval of the financial policy which he knows is urgently, necessary his wisest course would be to seek a dissolution or to accept the help of the Opposition in carrying out his programme. If he does I have not the shadow of doubt that Australian stocks will recover immediately.”