GOLD MUST BE SHIPPED

Taranaki Daily News, 29 April 1931, Page 7

GOLD MUST BE SHIPPED

AUSTRALIA’S OBLIGATIONS DEFAULT ONLY ALTERNATIVE MB. SCULLIN’S EXPLANATION NO HELP FOR GOVERNMENT By Telegraph—Press Assn.— Copyright. Sydney, April 28. Mr. J. H. Scullin, the Prime Minister, stated to-day that the Government’s measures for relief had been misrepresented, relentlessly opposed and thrown on the Senate scrap heap. Nothing .was offered in their place. t In June 30, added Mr. Scullin, Treasury bills amounting to £500,000 would fall due in Ldndon, The Commonwealth Bank Board had written informing the Government that they could give no . assistance >to meet this obligation. The loan market was closed, and the Commonwealth Bank was helpless. The only recourse left was to ship gold to London at once; otherwise Australia would default in nine weeks’ time. The Bill to auth<?rio that gpld to save Australians’ honour had been received in a hostile manner and bitter \ attacks had been made on the Government for introducing it, but not one suggestion was offered as to hqw this serious position should be met. This discourged "£he belief that there would be any cordial co-operation with the Government in facing iii task. Mr. Lyons’ contribution was fo push on with his plan to unite the Opposition forces again-1 the government, but the only (definite proposal put forward as an alternative to the Government’s practical policy was the defeat of the Government. SYDNEY SHAREMARKET SUBDUED UNCERTAIN FINANCIAL OUTLOOK. Recd. 8.30 p.m- Sydney, April 28. The Stock Exchange js rather subdued in tone. ‘Commonwealth bonds continue to weaken, particularly the short-dated issues, reflecting the linc'ertainty of the immediate political and financial outlook. A ''noticeably strong demand rules tor New Zealand Government stacks but advanced offers have fail?<Tto bring out sellers. Fairly good support exists for bank shares but the better claps of industrial shares continue to display weakness, due to the unsettled outlook. APREAL TO THE OPPOSITION. OBJECTION TO GOLD SHIPMENT. Recd. 8,40 p.ni. Canberra, April 28. During the debase in the Rous© Representatives in the committee stages of the Commonwealth Bank Bill, which authorises the shipment of gold to London to meet urgent obligations, the Prime Minister appealed 'to the opposition for co-operation in surmounting the present crisis, • He said, ths Government would bo prepared ’to abandon the fiduciary issue or' any other plank of its policy if the Opposition could show a better way out Of tfie national difficulties. Ha claimed, that the gold in the 'bank was earing nothing. It would save interest and heavy exchange if Parliament would agree io the shipment of £5,000,000 worth. Mr. J. G. Latham, Leader of the Opposition, replied that the removal of tlie gold reserve would, inflict perman- , ent financial disabilities. The remedy was radical of • th? f national economic and financial fabric. Semi-official sources explain that if $ further £5,000,000 in gold is shipped the reserve would be reduced to £10,000,000, which would he sufficient under the ixisting legislation to hack a note issue of not more than note issue is about £47,000,000. '■l’ ' ‘ \ , MR, LANG AGAIN DEFAULTS. COMMONWEALTH FOOTS BILl* Bee. 1.15 a.m. . .April Mr. Scullin announced tq-night that the New South Wales Goi’erfimeut would default by £1,500,000 in interest payments on May L Mr. Lang had informed him that the most the State could find by that date was £38,000. Mr. Scullin added that the Commoftr wealth would therefore have to foot the bill for tfie remainder. . _