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Waikato Times, Volume 109, Issue 18341, 29 May 1931, Page 7

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PLAN OF RECONSTRUCTION. ONLY TWO ALTERNATIVES. INFLATION OR DEFAULT. United Press Assn.—Elec. Tel. Copyright (Received May 29, 9.0 a.m.) MELBOURNE, May 29. Professor D. B. Copland, ohalrman of tho Economic Committee at the Premiers’ Conference, addressing Stock Exchange members, declared tha. there are only two alternatives to the plan of reconstruction before that conference —namely, inflation, with all its evils, and immediate default. He added that no Australian Government Is at present able to pay its way, while even with the , proposed drastic reduotion in expenditure and reduction in interest there will be a deficit of £13,000,000 on the Government Budgets at the close of the next financial year. This, however could be reduced as normal conditions returned. PROPOSED CONVERSION LOAN. A COMPULSORY METHOD. HEAVY IMPOST ON INTEREST. United Press Tel Copyright. (Received May 29, 9-2 o a.m.; MELBOURNE, May 29. A clause Imposing 25 per cent, extra tax on the interest on securities not converted Into the proposed new 4 per cent. £550.000,000 conversion loan is included in the tentative sohemo adopted at the Premier’s conference. The new loan is to have a currency of 40 years witli the option of redemption after ten years. A number of proposals were referred by tho confernce last night for discussion with the bankers and stock exchange representatives. ■lt is stressed that the final adoption of tho loan proposals is contingent on tho adoption by tho conference of the full plan, which includes 20 per cent, reductions in Governmental expenditure.