BANKS SHAKY.

Auckland Star, Volume LXII, Issue 87, 14 April 1931, Page 7

BANKS SHAKY.

MR. FENTON'S ATTACK. Statement at Ballarat Causes Sensation. CHARGED AS ALARMIST. (United P.A.—Electric Telegraph—Copyright) SYDNEY, April 13. Mr. J. E. Fenton, who was actingPrime Minister when Mr. J. H. Scullin was in England attending the Imperial Conference, speaking at Mr. J. A. Lyons' meeting at Ballarat, severely attacked Mr. Scullin's Government, but his remarks were not reported in Sydney, except by the "Sydney Sun," which had the following brief reference:— "Mr. Fenton said he had been told that within the next few days in New South Wales some important concerns would have to close their doors, because the banks could not come to their assistance. The banks could not do everything. They could not pay the Government on the one hand, and on the other maintain private enterprise."" According, to ' a wireless broadcast picked up in Sydney, Mr. Fenton, referring to large advertisements emphasising the New South Wales Government Savings Bank's independence and solidity, said he had been informed on good authority that cue or more of the New South Wales banks would have to close their doors within a few days, as the stronger banks were unable any longer to help their weaker brethren.

The other newspapers did not publish any of these statements until the "Labour Daily" printed the following: — "The wicked statement was made by Mr. Fenton at Ballarat that the commissioners of the Government Savings Bank of New South Wales are advertising that they ran the bank, and thai Mr. Lang had no control over it. But, said the alarmist, the position is so bad that it seems certain that the institution will have to close its doors within two or three days." An interjector said Mr. Fenton's remarks would not assist public confidence. "God forbid," said Mr. Fenton, "that I should say anything to alarm people, but as a public man it is my duty to tell the truth about what is going "on." He added that it seemed certain that in two or three days the institution would have to close. The "Labour Daily" comments that the bank officials are amazed at such a statement by a public man, when pleading for the renewal of public confidence. Had Mr. Fenton made such a statement during the war he would have been interned.