AUSTRALIA’S FINANCE

Timaru Herald, Volume CXXV, Issue 18489, 10 February 1930, Page 6

AUSTRALIA’S FINANCE

LOAN PROPOSALS CUT DOWN. (United Press Association—By Electric Telegraph—Copyright.) * SYDNEY, February 8. The Loan Council, meeting at Canberra, agreed to further drastic reductions in loan expenditure by the Commonwealth and States. The members will report to their respective Governments and meet again in a fortnight. The States originally planned to borrow £43,000.000. This had already been cut by 30 per cent; Now the economy axe chops it down to about £25,000,000. All the luxury schemes are to be abandoned and Mr Theodore (Commonwealth Treasurer) insists that rigid selfimposed discipline will have a tremendously good result in the eyes of overseas investors. The Council endorsed Mr Scullin’s assurances that Australia will promptly and regularly meet her obligations. HELP FROM BANKS. INVITED TO CONFER AT CANBERRA. (United Press Association—By Electric Telegraph—Copyright.) CANBERRA, February 9. (Received February 9, 5.5 p.m.) More help is to be sought from the banks in an effort to solve the Commonwealth’s financial problems. Mr Theodore stated to-day that representatives of all the banks had been invited to meet Mr. Stevens (New South Wales treasurer), and himself at Canberra next Thursday to discuss the subject. AMERICAN INTEREST AROUSED. FEATURED IN NEWSPAPERS. (United Press Association—By Electric Telegraph—Copyright.) (Received February 9, 11.30 p.m.) NEW YORK, February 8. The newspapers to-morrow morning will feature extensively in their financial pages the statement issued by Mr Brookes, in the name of Mr Scullin and Mr Theodore concerning the Australian financial position. Headlines such as “Australia spikes rumours on bonds and reassures that holders of Commonwealth stock will meet all obligations,” and “officials of Australia give assurances of Commonwealth’s financial stability.” The papers stress the importance of the statement, and indicate widespread interest in the matter. The Blair Company officials to-day, commenting on the cabled reports from Sydney that loan arrangements have been completed, declared that a definite settlement had not yet been made, EXCHANGE POSITION PRECARIOUS. GOLD SHIPMENTS IMPERATIVE. (United Press Association—By Electric Telegraph—Copyrigm.) (Received February 9, 5.5 p.m.) LONDON, February 8. “The Australian Exchange promises to remain precarious till the next export season,” says the newspaper “Statist.” Failing further borrowing in London or New York, more gold shipments are almost essential to prevent the drastic depreciation of the Australian pound. It is difficult to foresee the successful issue of an Australian loan in London, and shortterm borrowing will merely postpone the evil day.