PUBLIC PUZZLED

Taranaki Daily News, 17 January 1931, Page 5

PUBLIC PUZZLED

POLICY OF MR.:’ SCULLIN INFLATION OR NO INFLATION VARIOUS INTERPRETATIONS STOCK MARKET’S RESPONSE ■ ■« .j?* B "'' 'T" “ I BANK CHAIRMAN REPLIES W By Telegraph—Press Assn.—Copyright. ■ Rec. 8.20 p.m. Sydney, Jan. 16. I Mr. J. H. Scullin's .speech at Ashf field has left the Australian public wondering where lie really stands on the of inflation. The Sydney Morning Herald heads ’ the speech, “Against Inflation; MrSeullin’s Emphatic Declaration.” The Evening News in an editorial to-day says: “The stark fact remains that Mr. Scullin has broken the Melbourne agreement,and consented to inflation. He has wrapped it up in words in the hope that his audience’ would not notice it.” The Sun in an editorial says; “Mr. Scullin declared hiniself for neither inflation nor deflation but for the rational use of credit and currency to get the wheels of industry'' running again. That is the note which- is needed to restore confidence in Australia at home and abroad. This certainly is a splendid gesture.” Mr. C. H. Tranter, chairman of the Associated Banks, discussing at Melbourne Mr. Scullin’s speech, said it was all very well talking about the release of bank credits. The banks were already doing as much as possible. They could sell credit only if they could buy it. The notion was prevalent in some quarters that the banks had unlimited credit .in tlieir vaults; that

was entirely fallacious. Indeed, the banks had reached the end of their The Government and not banks could relieve the position. ■ “However, there is no need for panic,” added Mr. Tranter. “The efforts of some people' to send money out of the country are most undesirable.” He instanced the case of one man who paid £26 for £lOO in London. Mr. Scullin’s speech created a favourable impression in Victoria. It is regarded as a little vague on t,he inflation issue but the feeling generally is that it affords a ray of hope. INVESTMENT MARKET GAINS MORE CONFIDENCE DISPLAYED Rec. 9.20 p.m. Sydney, Jan. 16. The Prime Minister's speech on the ■Federal financial policy imparted a more confident tone to the investment market to-day. This is reflected particularly in tlie loan and banking sections which had suffered reverses on account of the talk of inflation. Prices were higher in both groups. One hundred sterling bonds 5 per cent, at 1933, advanced by 18s 9d, aj per cent., 1931, by Ils 3d, 6 per cent., 1936, by 16s 3d, 6 per cent.,. 1937, by 17s 6d, and 6 per cent., .1938, by 7s 6d. ’Bank of New •South Wales shares rose ps to £27 and New Zealand Insurance by 2s. Colonial Sugar was up by 2s 6d. The turnover reached the high level of £33,000 this morning. LONDON EXCHANGE PROBLEM. BANKS’ CONFERENCE' BEGI IS. Rec. 10.30 p.m. Melbourne, Jan. 16. The discussion on London exchange transactions began to-day at the conference of- the Associated Banks convened by the. Commonwealth Bank with a view to restoring stability. A long debate is expected between the advo-, cates of free exchange and those favouring “pegging,” or stabilised exchange. DANGER WEAKENS CONFIDENCE COMMONWEALTH HAS POWER Rec. 7.30 p.m. London, Jan. 16. Commending Mr. Scullin’s Ashfield [w speech and reviewing the position as ' -regards the Loan Council, The Times says: “The Labour Government of the Commonwealth, if sufficiently determined, can bring pressure on the Labour Government of New South Wales to fall- into line and play the game. The danger of a crisis is weakening confidence. Once confidence is restored there will be no lack of readiness to help overcome the temporary difficulties. Mr. Scullin only requires to show a firm front to both his difficulties and to the extremists in order to put Australia on the high road to recovery.”

“BONDS WORTH KEEPING.”

LONDON NEWSPAPER’S ADVICE.

Rec. 8.30 p.m. London, Jan. 16. “Worth keeping” is a simple one-line heading on the front page of the Daily Express under which appears the following: “Interviewed to-night .the Daily Express’ city editor said, ‘Don't sell Australian bonds now.’ ’’