LABOUR THREAT.

Auckland Star, Volume LXVII, Issue 72, 25 March 1936, Page 7

LABOUR THREAT.

AUSTRALIAN FINANCE.

Increased Interest Rates Challenge. DEPOSITS AND ADVANCES. United Press Association. —Copyright. (Received 10 a.m.) SYDNEY, this day. Mr. J. Curtin, leader of the •Federal Labour Opposition, commenting on the raising of the interest rates by the Commonwealth Bank, followed by trading banks, challenged the- Commonwealth Ministry to deal with the situation fearlessly. He declared that the Commonwealth Bank had abdicated to the Bank of New South Wales, and that Mr. A. C. Davidson, the manager of the bank, was now in control of the financial system of Australia. He warned the Government that if the Labour party came into power at the next election it would take the necessary steps to correct the position.-

The Commercial Banking Company of Sydney announces an increase in its fixed deposit rates which conform with those of the Commonwealth Bank. A corresponding rise in the rates on bank advances is now expected. Without formal announcement all the trading banks in Melbourne yesterday increased their fixed deposit rates to the same level as that of the Commonwealth Bank and sympathetic increases in mortgage and overdraft rates will follow.

The Premier of Victoria, Mr. A. A. Dunstan, in commenting, said it was most unfortunate that the rates should be increased at a time when so little money was available to help toward a general improvement. The position seemed to have been handled in a most unfortunate manner.

The Queensland National Bank, Brisbane, has also increased its deposit rates.

Adelaide banks, which had not already done so, have raised their fixed deposit rates as from Monday.

Mr. J. A. Lyons, who is in Adelaide, disclaimed responsibility on the part of the Loan Council or any Government authority for the interest rates. He said the impression existed that the Commonwealth Bank interest was fixed either by the Commonwealth Government or the Loan Council. The only influence any Government could have on interest rates was through the amount it borrowed and the consequent effect on the market.