CREDIT CONTROL IN AUSTRALIA

Press, Volume LXXXVIII, Issue 26856, 8 October 1952, Page 13

CREDIT CONTROL IN AUSTRALIA

i REMOVAL BY CENTRAL ■ BANK (N.Z. Press Association—Copyright) SYDNEY, October 7. The Commonwealth Batik’s control over loans made by the trading banks ended I today. The banks are now free to lend x money for any purpose, provided the-capi-tal issues regulations are not evaded. This was announced last night in a statement by the Commonwealth Bank . on its advance policy. ■ .The general manager of the Bank of 1 New South Wales (Mr S. J. Gandon) said: “While the freeing of these restrictions 4s ’ H? efu L and a In f be right direction. ! the effect of the move may be retarded , a bit through sheer lack of funds. The I release comes at a time when the banks are fairly fully lent.” : In Canberra, the Prime Minister (Mr i Menzies) said that the Commonwealth Government welcomed the move. It had ; no love for the unpopular but necessary ! restraints which the Commonwealth Bank , felt were necessary to protect, the economy from the perils of inflation, and it was concerned to see that as the waves • of inflation subsided those restraints were ■ withdrawn and business allowed to function in a more normal and unfettered 1 way.