AUSTRALIAN FINANCES

Wanganui Chronicle, Volume 73, Issue 34, 10 February 1930, Page 7

AUSTRALIAN FINANCES

THE ECONOMY AXE SOME DRASTIC REDUCTIONS [ Per Press Association 1 SYDNEY, Feb. 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 has already been cut down by 30 per cent. Now the economy axe chops it down to about £25,000,000, all luxury schemes to be abandoned and the order insists on rigid self-imposed discipline. It 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.

AID FROM THE BANKS. A PROPOSED CONFERENCE. Received Feb. 9, 8 p.m. CANBERRA, Feb. 9. 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, the New South Wales Treasurer, and himself at Canberra next Thursday to discuss the subject.

THE STATE RAILWAYS. BUSINESS FOOTING REQUIRED. Received Feb. 9, 8 p.m. SYDNEY, Feb. 9. The State Treasurer (Mr Stevens) foreshadows a new basis of control by which the State railways will be able to raise their own loan 8 and issue their own securities. Mr Steveng says that Canada’s favourable position on the loan market is due to the Dominions railways being on a business footing independent of the Treasury. In the course of a reply to a country deputation asking for electrification and other development o the train services, the cost of which would be between £25,000,000 and £30,000,000, Mr Stevens said that the stringency of the money market precluded hope of those things being done at present. Unless they adopted the Canadian system it would be impossible to obtain finance to meet the railway needs.

GREATER FEDERAL POWERS. Received Feb. 9, 8 p.m. CANBERRA, Feb. 9. It is understood that the questions to be submitted to the people in the constitutional referendum will be firstly for complete Federal powers and secondly for full industrial powers Mr Scullin declines to comment until the Parliamentary Party meets on March 3.

MONEY FROM AMERICA STATEMENTS IN THE PRESS Received Feb. 9, 11 p.m NEW YORK, Feb. 9. Newspapers to-morrow morning will feature extensively on their financial pages a statement issued by Brookes in the name of Messrs Scullin and Theodore concerning Australian finances. Headlines such as “Australia Spikes Rumours on Bonds,” reassures holders that the Commonwealth will meet all obligations, and also “Officials of Australia Give Assurances of the Commonwealth’s Financial Staiblity.” The newspapers stress the importance of the statement and indicate the widespread interest in the matter.

The Blair Company officials to-day, commenting on the cabled reports from Sydney that the loan arrangements had been completed, declared that a definitive settlement had not been made.