AN ULTIMATUM

Dominion, Volume 23, Issue 52, 25 November 1929, Page 11

AN ULTIMATUM

FEDERAL GOVERNMENT AND THE BANKS “FOLLOW SUIT OR PERISH” GOVERNMENT’S NEW PROPOPOSALS OUTLINED (United Press Association.—By Electric Telegraph.—Copyright.) (Rec. November 24, 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 cash reserve and the transfer of power to fix exchange rates with London from the Associated Banks to the Commonwealth Bank. Mr. Theodore Forestalled. The Hon. F. Ansty, Minister of Health, forestalled Mr. Theodore, who is treasurer, with an explanation of the Government’s intentions. Mr. Anstey declared that the banking institutions must cease to be masters and must become the servants of industry. He points out that the exchange rates at present are not fixed in accordance with the movements of money and credit between Australia and London, but largely on the result of secret understandings between the private banks. “In these periods of depression it is essential that advances should be made on good security,” said Mr. Anstey. “Labour will enable the Commonwealth Bank to hate an opportunity of providing a great service to the nation and the private banks must follow suit or perish. Thus industry will be promoted ; employment follows and prosperity is the outcome.” America’s prosperity, Mr. Anstey claims, is largely based on the progressive policy of her financial institutions.

THE SUPER-TAX PROPOSALS LONDON COMMENT (Rec. November 24, 5.5 p.m.) London, November 24. The “Financial News” states the new super-tax proposals will accentuate the complaint of double eaxation 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 already has 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 the disturbing element lies in the source from which they, proceed. The article concludes: “Mr. Theodore has admitted that Australia’s credit is somewhat impaired and bis statement has not given grounds for thinking he is on the right road to restore it.” -