AN IMPETUS TO BUSINESS

Taranaki Daily News, 12 June 1931, Page 7

AN IMPETUS TO BUSINESS

COMMERCIAL MEN PLEASED NO PROTEST FROM LABOUR WARM RESPONSE EXPECTED BIG SACRIFICE INVOLVED By Telegraph—Press Assn.—Copyright Rec. 10.30 p.m. Sydney, June 11. Commercial and trading circles are pleased with the outcome of the Premiers’ conference. They express the opinion that it should give an immediate impetus to business as weU as stabilise Australian securities.

So far no protest against the plan has been heard from official Labour, and assurances are not lacking of a popular response to the conversion loan.

A Canberra message states that in order to enable members of the Federal Labour Party to consider the decision of the Premiers’ conference the Federal Parliament adjourned until next Wednesday. The Stock Exchange is far from active owing to the uncertainty regarding the exact terms on which the existing loans are to be brought within the internal conversion scheme. Thus an attitude of caution is displayed. However, the general economy plan evolved by the Premiers’ conference is regarded hopefully. The, Prime Minister, Mr. J. H. Scullin, summarising the conclusions reached at the conference, declared that ap the whole plan of rehabilitation had been adopted all round sacrifices would have to be made. The saving of interest, by the conversion loan should yield £6,500,000. The deficits for the seven Australian Governments for the present financial year would be £31,000,000. This would be reduced to £15,000,000 by various means, chiefly by cuts in Government employees’ salaries, in war, old-age and other pensions, and by adjustments in taxation.

He appealed to all sections to reconcile themselves to the situation, pointing out that unless the drift Was stopped the Government early in July would be unable to meet its obligations, resulting in a breakdown of public utilities and business chaos, as a result of which no wages or pensions would be available for anybody. On the other hand, whatever reductions were made in private incomes would largely be coun-ter-balanced by the fall in the cost of living, the restoration of employment and the maintenance of sustenance relief. IMPRESSIONS IN BRITAIN. “GREAT APPEAL TO PATRIOTISM.” Rec. 5.5 p.m. London, June 10. The newspapers comment favourably on the decision taken by the Australian Premiers’ conference, by the Federal and State Governments and the leaders of the Federal Opposition. “Nothing would contribute more powerfully, to restore the credit of Australia than the success of the appeal which is now to be launched,” says the Times. .“It is a great, sacrifice to ask, but Australians have never yet failed to respond to an appeal to their patriotism.” “They are practical steps, and. both the economies themselves and -the spirit which inspires them should dp much to revive confidence in Australia’s future and relieve speedily the wprst features of the situation,” states the News-Chronicle.

“The Australian Premiers’ conference made financial history,” says the Daily Telegraph, in an editorial. “It represented a supreme effort of. statesmanship to overcome desperate difficulties by a wise decision to appeal for voluntary conversion. Tho credit of Australia has been placed directly in the hands of a large section of the public, upon whose response the whole financial outlook in a great degree dependsNo doubt they will realise that much more than their own immediate interests hangs upon the success of this great gesture of confidence in Australian patriotism.” The Stock Exchange immediately responded to the news of the voluntary conversion plan, and practically all Australian stocks were marked up five points. Actual dealings recorded were: Commonwealth 5 per cents, £65 to £6B; 6 per cents, £77 to £80; Victorian 5 per cents, £56; 4J per cents, £55 ,to £5B; New South Wales 4 per pents, £6l to £6l 10s; 3 per cents, £5O to £5l;, 5$ per cents, £72 to £75 ; 6 per cents, £6O; Queensland 5 per cents, £53 to £6O; 3 per cents, £4O to £45; Tasmanian 34 per cents, £55; 64 per cents, £B2. _ STOCKS IMPROVE IN AMERICA. RAPID RESPONSE TO NEWS.

Rec. 10.30 p.m. New York, June 11. Responding actively to the favourable news that ah agreement had been reached by the Melbourne Premiers’ conference on a reduction of interest Australian stocks showed large gains on the Stock Exchange to-day.