FINANCIAL STRESS IN NEW SOUTH WALES.

Star (Christchurch), Issue 18985, 3 February 1930, Page 9

FINANCIAL STRESS IN NEW SOUTH WALES.

SETTLEMENT OF COAL TROUBLE AS SOLUTION.

(United Press Assn.—By Electric Telegraph.—Copyrigrh t.)

(Received February 3, 9.30 a.m.) SYDNEY, February 3. A conference was held during the week-end between the Prime Minister (Mr Scullin), the Federal Treasurer Mr Theodore), the Premier of New South Wales (Mr Bavin), and the State Treasurer (Mr Stevens), concerning the grave financial position of New South Wales, due largely to the prolonged disastrous coal dispute and the serious decline in wool prices.

The discussions were held in private. Mr Bavin stated afterwards that the State’s difficulty was in obtaining loan money for a continuance of public works. If money for this purpose could not be obtained, drastic retrenchment would have to be considered. Finality, however, had not been reached.

The Prime Minister had emphasised the desirability of finding a settlement of the coal dispute as an incentive to investment in loan issues and the restoration of confidence in Australia, added Mr Bavin. Mr Scullin had described the whole problem of obtaining finance for all States as very serious. The conference has not concluded.