NO INFLATION

Taranaki Daily News, 10 June 1931, Page 5

NO INFLATION

MR. SCULLIN’S ASSURANCE AN AGREEMENT A CONDITION l ' ’ MR. LANG ONLY DISSENTIENT CONVERSION LOAN SCHEME APPEAL TO AUSTRALIANS gy Telegraph—Press Assn.—-Copyright. Rec. 8 p.m. Melbourne, June 9. After conferring with the Federal Opposition leaders to-day the Prime Minister, Mr. J. H. Scullin, proposed to the Premiers’ conference the appointment of a national appeal executive consisting of himself Mr. J. A. Lyons and the chairman of the Commonwealth Bank Board to direct the campaign for voluntary conversion of the internal debt.

Mr. Scullin’s motion on the subject emphasised the danger of default and the need for drastic retrenchment and concluded with an earnest appeal to all sections of the people in the interests of the nation to accept the sacrifice involved. Mr. J. T. Lang was the only representative at the conference to sound a discordant note. He declared that it was nothing more than a pious resolution which provided no means whatever of compelling bondholders who did not convert to share in the general sacrifice. He strongly opposed the motion and asked what had brought about the sudden change of front. He expressed the opinion that Mr. Lyons was at the bottom of the change and declared that Mr. Lyons had broken up every party, every Government and every Cabinet with which he had been associated.

Complete satisfaction with the assurances given by the Commonwealth Government was expressed by Messrs. Lyons and Latham, Sir George Pearce and other prominent members of the Opposition. It was learned that Mr. Scullin and the Commonwealth Government had given the most definite assurance that the inflation policy would be abandoned if any agreement was reached at the present confer°nce - . ir T > Mr. Lang took exception to Mr. Lyons criticism of the policy of the Governments in the past and threatened to leave the conference.

“As far as New South Wales is concerned it will riot allow Mr. Lyons, or anyone else to interfere,” said Mr. Lang. “If he is going to ■come in and attempt to dictate I shall cease to be a member of the conference.” COMPLETE AGREEMENT NATIONAL PUBLIC ECONOMY. VOLUNTARY LOAN CONVERSION.’ Rec. 12.5 a.m. Melbourne, June 9. The Prime Minister announced tonight that a complete agreement had been reached on his proposal for a national appeal executive, and a draft scheme had been prepared embodying a 20 per cent, all-round cut in public expenditure and a voluntary loan conversion at 4 per cent. Mr. Lang had agreed but with the reservation that unless the loan conversion was entirely successful he, on behalf of New South Wales, would not undertake to cut public expenditure or recommend any form of wages reduction. MR. LANG’S ECONOMY SCHEME. DISAPPROVAL BY PUBLIC MEN. Sydney, June 9. Public men generally condemned Mr. Lang’s proposal to effect Government econo mies by reducing all public service salaries to a maximum of £5OO a year. While agreeing that all round sacrifices were necessary they considered that the scheme savoured of Communism, that it was impracticable and was directed unfairly against one class. Mr. T. R. Bavin, Leader of the New South Wales Opposition, said that he could hardly believe that the plan was put forward seriously. He would reserve any comment until he heard more about it.