BANKRUPT STATE

Dominion, Volume 25, Issue 80, 29 December 1931, Page 7

BANKRUPT STATE

Possibility Ahead of • New South Wales CANBERRA’S ATTITUDE! By Telegraph—Press Assn.—Copyright. Sydney, December 28. The “Daily Telegraph” says that one of the first things the new Federal Government is likely to consider is the financial position of New South Wales, which would raise the possibility of this State being practically declared bankrupt. , The Loan Council can only possibly consider Sir. J. T. Lang’s application for the approval of a bond issue to cover the cost of the Eastern Suburbs Railway on the condition that Sir. Lang made good the defaulted interest and fully honoured his promises to the Council. Unless steps are taken to place New South Wales in a solvent condition, the necessity of Installing a receiver will become urgent. RATE ON RENEWALS Australia’s London Debts London, December 27. In view of the Commonwealth’s inability to discharge £5,000,000 worth of bills maturing on December 31 with the Westminster Bank, an interesting point at the moment is the rate at which renewal may be expected. The rate of £6/3/3 per cent. at which New Zealand bills were placed has been mentioned, but the general opinion of the market is that the finances of the two Dominions cannot be judged on the same basis. 'ln the case of Australia the expectation has been that 1 per cent, above the bank rate would be asked, but the Australian Press Association understands that the marked swing of the political pendulum in the Commonwealth is likely to tell in its favour, and that a renewal at 6| per cent, is not overmuch to hope for.