BANKING LEGISLATION

Press, Volume LXV, Issue 19785, 25 November 1929, Page 12

BANKING LEGISLATION

LABOUR GOVERNMENT'S INTENTIONS. A MINISTERIAL EXPLANATION. (rSTTED FRESS ASSOCIATION —BY KLKCTBIO TELEGSii'a—COPTBIGHT.) (Received November 24th, 5.5 p.m.) CANBERRA, November 24. The Labour Ministry's new banking proposals involve the removal of the present restrictions on the proportion of notes to the cash reserve and the transfer of power to fix the exchange rates with London from the Associated Banks to the Commonwealth Bank. Mr F. Anstev, Minister for Health, forestalled Mr Theodore, -who is treasurer, with the explanation of the Government's intentions. Mr Anstey declared that banking institutions must cease to be masters and must become the servants of industry. He pointed out that exchange rates at present were not fixed in accordance with the movements of money and credit between Australia and London, but large-

ly on the resnlt of secret understandings between private banks. In these periods of depression, it -was essential that advances should be made on good security. Labour would enable the Commonwealth Bank to have the opportunity of providing a great service to the nation and private banks must follow suit or perish. Thus inuustry will be promoted, employment will follow and prosperity will be the outcome. America's prosperity, Mr Anstey claims, is largely based on the progressive policy of her financial institutions. SUPER TAX PROPOSALS LIKELY EFFECT IN AUSTRALIA. FINANCIAL NEWSPAPER'S COMMENT. (Received November 24th, 5.5 p.m.) LONDON, November 24.

The "Financial News" states, that the new super-tax proposals will accentuate the complaint of double taxation from those liable, both here and in Australia. The effects of the increased Customs duties may be considerably more serious. Manufacturers here will necessarily be injured, while from Australia's standpoint, the tariff changes will perpetuate a policy which has already been condemned as contributing to that failure of expansion of national income which is the root of her financial difficulties. The editorial awaits details of the banking proposals, and says that the disturbing element lies in the source from which they proceed, and concludes: "Mr Theodore has admitted Australia's credit is somewhat impaired, and his statement has not given grounds for thinking that he is on the right road to restore it."