MORE CUTS REQUIRED

Dominion, Volume 24, Issue 292, 5 September 1931, Page 7

MORE CUTS REQUIRED

Revenue Has Collapsed AUSTRALIA’S PROBLEM Banks’ Offer to Premiers HELP IN BRIDGING GAP, By Telegraph—Press Assn.—Copyright Melbourne, September 4. The Premiers’ Conierenee has sought the aid of the Commonwealth Bank Board in solving the problem of how to meet an aggregate deficit of £18,500,000, which Is nearly £3,500,000 above expectations, owing to the collapse of the revenue of various Governments since the last Premiers’ Conference. At the time of the previous conference the aggregate deficit was expected to be £15,000,000 or thereabout. The Bank Board, while pointing out that it was impossible to finance the extra £8,500,000, stated that it was prepared to find £1,600,000 of It, leaving it to the various Governments to find the balance, either by Increased revenue or decreased expenditure. Mr. J. T. Lang, on behalf of Nqyv South Wales, agreed to make further cuts In expenditure of £590,000. TURNOVER OF BANK Reasons for Merger Given THE BENEFITS OF UNITY Sydney, September 4, The Australian Bank of Commerce, in a circular to shareholders, declares that the proposed merger with the Bank of New South Wales was arrived at “owing to the general outlook as we saw it and owing to the reduced turnover in all financial transactions likely to operate for the next few years, these factors precluding the likelihood of substantial profits on shareholders’ funds.” The board also took into consideration the benefits derivable by the abolition of overlapping banking facilities in places where the two banks are established. The terms of the merger will be submitted to separate extraordinary meetings of the shareholders of these banks on September 15.