FEDERAL BILL.

Auckland Star, Volume LXII, Issue 72, 26 March 1931, Page 7

FEDERAL BILL.

INTEREST RATE CUT.

Government Step to Force Bank Reductions.

£1000 PENALTY CLAUSE

(United P.A.—Electric Telegraph—Copyright)

(Received 10 a.m.) CANBERRA, this clay. Mr. Theodore, in moving the second | reading of the Bank Interest Bill in ! the House of Representatives, said that if the interest rates were reduced one per cent industry in Australia would save about £4,000,000 per year. In discussions with the Government the banks had raised no objection to the principle that interest rates be reduced. The Government, however, was unable to accept dictation from banks as to its policy ancl because the banks had failed to take the initiative in reducing interest rates the Government had found it necessary to proceed with this measure. A fine of £1000 was provided for as the penalty for charging a rate in excess of the maximum under the bill. One proposal in the measure is that a board of five members be appointed with power, to make recommendations to tlie» Treasurer in the following direction: — Firstly, the maximum rate of interest which would be payable within the Commonwealth on bank deposits lodged with the banks and on advances by the banks by way of loans, overdrafts, or otherwise; and, secondly, the maximum discount rate which could be charged by the banks on bills, drafts -and other securities.

N.S.W. INTEREST CUT.

Senate Postpones Lang Bill Six Months.

PLEBISCITE URGED,

(Received 12.30 p.m.) SYDNEY, this day. The Legislative Council, by 3votes to .22, postponed for six months the second reading of the Interest Reduction Bill, Sir Joseph Carruthers, who proposed the motion; urged the Government to refer the bill to the people, and simultaneously to ask the electors if they wanted the Upper House to continue. The opponents of the bill condemned it in strong terms as the first step in Mr. Lang's repudiation policy.