Aust. H.P. Lending Must Slow Down

Press, Volume CIII, Issue 30445, 20 May 1964, Page 6

Aust. H.P. Lending Must Slow Down

(N.Z. Press Association—Copyright) SYDNEY, May 19. The governor of the Reserve Bank, Dr. H. C. Coombs, last night w'arned a gathering of executives in the hire-purchase industry they “must be prepared to slow down.”

“It seems likely that plans for larger private expenditure and some restraints on the growth of liquidity should

add to the demand for loans,” he said.

Dr. Coombs was speaking at a dinner held as part of the first National Instalment Credit Conference at the University of New South Wales. He said Australia’s economy after one of the most protracted upswings in postwar history, was approaching conditions of overstrain. Premier’s Criticism

The Premier and Treasurer of New South Wales (Mr Renshaw) today said the Commonwealth Government allowed fringe banking organisations to go unfettered while limiting public spending. He was commenting on the warning by. Dr. H. C. Coombs. Mr Renshaw said he agreed with Dr. Coombs that hirepurchase firms could strengthen their own internal liquidity and capital structure and refrain from emulating the reckless and irresponsible who lent money to borrowers and increased pressure on resources. .

“In the banking section of the economy controls are imposed to some extent on the private banks by the calling up of reserves. But the hirepurchase sector, which is the largest spending sector, goes unfettered. “If the Commonwealth wants to control inflation, it must control hire-purchase fringe banking,” he said.