DIRE EFFECTS OF OVER-BORROWING.

Timaru Herald, Volume CXXV, Issue 18499, 21 February 1930, Page 9

DIRE EFFECTS OF OVER-BORROWING.

Australia’s Difficult Position.

PREMIERS CONFERENCE OPENS. (United Press Association—By Xlectrle Telegraph—Copyright.) (Received February 20, 10.5 p.m.) CANBERRA, February 20. Addressing the Premiers Conference the Prime Minister (Mr Scullin) dealt with the depression from which Australia is suffering. He said: “We are feeling the effects of overborrowing. Our difficulties are accentuated by a poor season, a smaller wool clip, reduced wool prices, an unresponsive loan market, and also one serious industrial dispute, but the recent rains, in all parts of Australia, indicate that the outlook for the agricultural and pastoral industries is probably brighter than for years past, a return to normal conditions may be expected at no distant date. Mr Scullin advanced various means for effecting economics, the cost of administration, such as electoral cooperation, one tax-gathering authority and the amalgamation of the agents general in London, under one roof at Australia House. The Premiers of the different states then expressed the hope that the conference would first begin an examination of the Commonwealth’s financial position, in order to arrive at a common ground for the restoration of confidence in England. This course was immediately followed in camera.

LONDON’S RETURNING CONFIDENCE. BELIEF IN STABILITY OF COUNTRY. (United Press Association—By Electrl# Telegraph—Copyright.) (Received February 20, 11.30 p.m.) LONDON. February 20. The “Daily Telegraph’s” financial corespondent says that Australian loans were recently under a cloud, but public sentiment has been favourably influenced by the asertion of Sir Robert Gibson that those who purchased Australian securities to-day will have reason to congratulate themselves in the future. Inquiries in the city show little disposition to sell Australian stocks, and large holders are sitting tight. It is somewhat difficult to obtain short-datded loans in any quantity. There are no misgivings concerning the ability of the States to meet their obligations maturing in the next few years. The “Daily Telegraph” goes on to detail that Australians are likely to appeal to those looking out for reasonably assured capital apprecitation which is not liable to income tax.