AUSTRALIA’S PROBLEM

Waikato Times, Volume 109, Issue 18343, 1 June 1931, Page 7

AUSTRALIA’S PROBLEM

COMPULSORY CONVERSION DESCRIBED AS REPUDIATION. VIEWS OF THE OPPOSITION. United Press Assn. —Elec. Tel. Copyright. MELBOURNE, May 31. The Leader of the Federal Opposition, Mr J. A. Lyons, and the deputyleader, Mr J. 'S. Latham, have addressed a letter to the Prime Minister, Mr J. H. Soullin, in which objection is made to the proposal now before the Premiers' Conference to compel the conversion of the internal loans at a reduced rate of interest. The writers describe it as repudiation, the effect of which is already obvious on the Stook Exchanges in Australia and abroad. “Persistence in advocaoy of this polioy," the letter says, “will, we fear, make an honourable and voluntary conversion impossible, and will also greatly prejudice the success of any new loan to assist farmers and the unemployed. “We, therefore, appeal to the conference to oonsider the utmost care and sense of responsibility the inevitable effects of this polioy upon the financial and economic position of Australla." Mr Scullin will bring the letter before the conference to-morrow.

LATER. THE PREMIERS' CONFERENCE. NEARING A SOLUTION. INCREASE IN EMPLOYMENT. United Press Assn.—Elec. Tel. Copyright. (Received June, 1, 10 a.m.) MELBOURNE, June i. Mr Theodore said the Premiers’ Conference is very much nearer a solution of the great problems confronting Australia, and is also nearer a condition which will lead to an early increase In employment. It would probably require another fortnight, and if necessary the conference would adopt the necessary legislation for submission to each Parliament. Emergency sessions would be necessary in each State to put- this legislation through. V ENGLISH PRESS COMMENT. FACING UNPLEASANT FACTS. United Press Assn. —Elec. Tel. Copyright. (Received June 1, 9.30 .a.m.) LONDON, May 31. - The weekly financial newspapers, which make little comment on the Australian financial proposals, are mostly content to publish details. The Economist says that for the moment it is sufficient to say that Australia’s present methods ' possess a far greater chance of success than those 'essayed earlier in the year. Explaining the city’s view of the proposals of the Premiers’ Conference in Melbourne, a well informed authority tells the Australian press that while the city generally is not greatly perturbed, opinions fall roughly into two olasses, one of which considers that the authorities have at last come face to face with the unpleasant facts, thus holding out hope of the formulation of a sound and rigorous financial policy. On the other hand there is obscurity regarding the compulsory or voluntary conversion proposal. Those fearing the former are unable to see an early return to confidence.

The Sunday Times’ financial editor says the reduction of interest on internal loans in Australia is regarded with mixed feelings, but the evidence of economy is welcomed. It is feared that the Commonwealth may attempt to interfere with the rights of external holders. The Observer says it cannot be denied that the conversion proposal Is a form of compulsion, amounting to repudiation of a part of the contract on which the money was borrowed. If, however, Australia succeeds in extricating herself from the morass much that Is obnoxious to the financial purist will bo forgiven. STABILISING CURRENCY. LONDON COMMITTEE’S EFFORTS. FOREIGN AID ASSURED. (Official Wireless.) (Received June 1, 11.30 a.m.) .RUGBY, May 30. 'Further progress was made yesterday with the Austrian Credit Anstalts affairs. The London committee (which, as announced earlier this week, was set up on the suggestion of the Credit Anstalts and in agreement with the Governor of the Bank of England) had a meeting with interested parties, and it was asked to Invite the co-operation of other centres with a view to continuing the existing credit facilities to the Credit Anstalt. Communications with bankers in other centres are proceeding, and It is expected a common polloy will be adopted. Ten of the largest central banks, in addition to the Bank for International Settlements Itself, have agreed to put at the disposal of the Austrian National Bank, foreign exchange oredlt to be used as required. These arrangements will ensure the convertibility and stability of Austrian currency.

the loan conversion plan. OPINION OF BANK MANAGERCONSIDERS IT SOUND. United Press Assn.—Elec. Tel Copyright. (Received June 1, JO.O a.m.) SYDNEY, June 1. The Telegraph says that influential support, for the loan conversion plan of iiic Premiers' Conference, which is resuming at Melbourne to-day, is believed to lie behind the visit of the general manager of the Bank of New South Wales, who has reached Melbourne from Sydney, lie believes Ihe plan Is sound and capable of restoring the budget equilibrium in a reasonable time.