Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-02
AUSTRALIAN LABOR
LEADERS DICTATE
Superb rIiamentS Called as
Country Faces Its
Worst Crisis.

| --AuGJIhlluo UOOAA AAuc 0uASb WIN ~
terrific crash that is reverberating
throughout the continent. Govern
ments are at their wits end to flnd a
formula to meet a situation that is the
worst in the country's history.
The lightweight debt of 100 millions
sterling is pressing heavily on the ma
tons resources, which are impover-
ished by a loss OF national income.
Eighteen per cent of the workers are
unemployed. Relief schemes are eating
up vanishing funds. The burden OF
taxation is piling high on the shoulders
OF taxpayers with reduced incomes.
The government Of South Australia
has lust been saved from bankruptcy
by Q contribution from the other states
which themselves are in the financial
backwash.
| There has been wild talk of debt re-
pudiation which has not helped Aus
tralia'S credit abroad, but 1t can be
said quite definitely that such q policy
| finds no place either in the councils OF
government or in the minds of citizens.
super ParIiaments" Meet.
| Fighting proposals for wage reduc-
tionS and rationing of government eni-
ployment. conference OF labor unions
and political Labor parties are meeting
as super parliamentS to instruct govern
ments how they should deal with ex-
isting difficulties.
| The Labor premier of Victoria (Mr.
/ Hogan attended an an-night sitting
Of the Victorian political Labor party.
which passed q resolution demanding
| that the government shall take ltS IN
struction from the trades hall.
Though they know the state treasury
| is denuded of funds, the union bosses
demand there shall be no dismissals
and that there shall be no rationing OF
government work without the consent
Of the unions concerned.
Postal Budget Cut.
The acting federal treasurer (Mr.
| I,yons) attended the Labor conference
and laid bare the financial position.
| ONLY q few months back, he said, the
| loan program was 5000, 100000 for the
wear, but on survey it had to be reduced
| to $l20,0O0,00 and was down to
| SIS, OO0, 900. They were not yet sure
whether that reduced amount could be
raised. As postmaster general. ne oe-
sired money for reproductive works up
to $4,000, 900 for the year, but the
treasurer had said that was impossible.
and insisted on a cut to $l2,500, 900.
| Today the position was still worse,
and works which were then reproduce
! tive could not now be regarded as such.
Now the program was $500 900. The
figures indicated the enormous slip. To
the Commonwealth and other banks
they owed $4,000, 900, which would
shortly fall due, as well as external
loans. Their resources had been
stretched to the utmost, but without
avail, and the present effort could not
be improved upon. The margin In
| banks between deposits and assets was
about 800, O00, 900. which was below
the margin security. The safeguard
was the Commonwealth Bank and the
| note issue.
1t would be necessary to use the note
| issue TO market the produce OF
| Australia, and thus protect the export
| trade. Growing deficits were menace,
! and the government set out to finance
| the affairs of the country with q bal
anced budget If the first two months
| Of this year were an indication the
! present year would result in a def1cit OF
! from $40 O0O, 900 to $50,000,0O0. The
| dificulty Of external and internal loans
| to meet commitments gave cause Tor
much concern. The government hoped
to carry through with the aid OF the
banks to balance ledgers. II not this
year at least in succeeding years.
Three Problems Faced.
There were three things that stared
the country in the face. One was
Australias good name and creot
! abroad. The second was economies
and cuts in expenditure and including
taxation, and the third was the duty
J of the government TO ind work for
the people.
The Australian Council Of Trades
Unions, a federal body which Is
super structure of the industrial labor
movement, has its own way of dealing
with problems that are bafning banks
AF hi ttfa
its recommendations for restoring the
| financial position were that TO free the
credit resources Of the country the fed
eral government should provide $780,
600 600 that the decisions Of the
premiers' conference should be re-
! pudiated by the federal and state Labor
governments and that the loan council
should be dissolved.
! It was also suggested that the prime
minister (Mr. Scullin) while in Eng
! land should negotiate with the British
government with the object Of read
| justing the burden of Australians war
Indebtedness. that legislation should be
introduced to reduce rates Of interest,
to dewater bonus shares in companies
and to limit dividends, and that Labor
members Of Parliament should be in
structed to give effect to the policy
regarding wages and conditions.
I 4AC LCROAb vi b1lC LOuAbCAA
committee stated that the provision OF
employment depended almost entirely
on freeing the credit resources of the
country. As q first contribution in this
direction the committee considered
that the federal government should find
100000, 900, that an economic council
should be set up with equal repre-
Sentation of workers and others with a
minister as chairman TO determine the
ALLEGATION Of credit.
Money Lenders Opposed.
Reasons given for repudiating de-
cisions reached at the premiers con-
ference were that the conference called
for a reduction of wages and the lower
ing of the standard of living. Further,
the committee was of the opinion that
the recent proceedings Of the loan
council had demonstrated that that
organization was merely an instrument
In the hands Of the nloney-lenders and
capitalists generally, which could always
be manipulated to prevent a Labor
government - federal or state - from
carrying out the platform of the
Australian Labor party.
(Copyrisht, 1880. by North American News
| paper Alliance,)