AUSTRALIA’S BIG DEFICITS.

Timaru Herald, Volume CXXV, Issue 18616, 11 July 1930, Page 9

AUSTRALIA’S BIG DEFICITS.

Federal Budget Criticised. "STAGGERING BLOW TO TRADE.” United Press Association—By Electric Telegraph—Copyright (Received July 10, 8.40 p.m.) SYDNEY. July 10. The Goverment’s new taxation and revenue duties have dealt a staggering blow to trade and industry. Leaders of commerce all declare that the new imposts must be passed on. thus further increasing the cost of living and intensifying unemployment. Share values slumped sharply on the Stock Exchange, sellers lowering their limits drastically in an endeavour to realise. The anxiety to sell appeared to be genuine. Buyers, however, wanted big concessions. For example, brewery shares fell from by 6d to 1/9. Trading in industrial shares receded most heavily, and touched the lowest levels for many years. Bank of New South Wales shares fell by 5s to £37s 15d, Commercial Bank of Sydney by 4s to £l9 15s. The market for gilt edges was extremely quiet, sellers having to face small losses. The motion picture distributors declare that the taxation of tneir industry has reached the breaking point. The extra Id per foot on film, means an extra £2OOO per week or £112,000 a year. A leading accountant stated that thi direct and indirect Federal taxation for the current year amounts to over £59,000,000. Reports arriving from all states contain most bitter protests against the taxation proposals, and the dire effects these are likely to have upon the trading communities. The Minister for Customs* states that the new customs and excise duties will not affect any goods the produce or manufacture of New Zealand. An agitation has begun in Adelaide and Brisbane for a united business men’s organisation, to frustrate the Federal Government’s attempt to enforce taxation me -ures, which, according to one manufacturer, are likely io put half the wholesalers in Australia out of business. The share market in Melbourne slumped sharply.

MAINTAINING NATIONAL CREDIT BANKING AUTHORITIES CONFER. United Press Association—By Electric Telegraph—Copyright MELBOURNE, July 10. Eminent banking authorities are conferring here on the question whether Australian credit in London can be pooled with advantage. The official exchange rate for telegraphic transfer of money to London is still £6 10s per cent.

It is understood the bankers are discussing a proposal to co-ordinate the availability of exchange on London to meet the future needs of Australia in respect of interest on oversea debts accruing from time to time, which, if successful, will improve the general financial outlook.

It was announced that a tentative agreement had been reached whereby it was intended that as far as practicable the Governments of Australia should have the first call on Australian credit in London for meeting national obligations. The Conference was unanimous that the national credit must be maintained at all costs.