CDHFERENCE OF PREMIERS

Taranaki Daily News, 9 June 1931, Page 7

CDHFERENCE OF PREMIERS

OPPOSITION TAKES PART

OBJECTORS TO INFLATION REQUEST FOR A GUARANTEE CONVERSION LOAN SCHEME By Telegraph—Press Assn.—Copyright. Rec. 10.30 p.m. Melbourne, June 8. When the Premiers’ conference resumed to-day the Prime Minister, Mr. J. H. Scullin, welcomed the Opposition leaders, Sir George Pearce of the Senate, Mr. J. A. Lyons, leader, and Mr. J. G. Latham, deputy-leader, of the united Opposition in the House of Representatives. The trio became additional members of the conference, which has now been sitting three weeks. Mr. Lyons signalised his presence by asking for guarantees that the Commonwealth Government would abandon its inflation policy and would carry out the economies already outlined by the conference. If the guarantees were given, he said, the Opposition would support the proposal for voluntary conversion of the internal debt at 4 per cent.

The conference received advice from Sydney that the life assurance companies have agreed to convert their Government securities at the lower rate of interest as planned by the conference.

A Sydney message says it is expected that a proposal will be discussed for the flotation of an internal conversion untary basis. It is considered that such loan for £556,000,000 on a purely vola loan would have an excellent chance of success. FEDERAL CABINET SUPPORT. SCHEME TO SAVE DEFAULT. Melbourne, June 8. After five' hours’ discussion the Federal Cabinet concurred in the decisions made by Messrs Scullin and Theodore at the Premiers’ conference. They will go to resume the conference with the full agreement of the Cabinet on the steps considered necessary for financial rehabilitation.

Every Minister attended the meeting. The facts placed before them convinced them that a general scheme was the only one possible to save default.