AUSTRALIA'S PLIGHT

Evening Post, Volume CIX, Issue 33, 8 February 1930, Page 9

AUSTRALIA'S PLIGHT

DUE TO EXTRAVAGANCE

COLD SENT TO LONDON'

SYDNEY, 7th February.

Sir Robert Gibson, chairman of ths Commonwealth Bank,' announced that the bank was shipping seven millions in gold to London immediately for the purpose of building up reserves to meet overseas obligations. This amount, together with ten millionsl in gold shipped overseas since last July, totalled sovontceu millions.

Sir Bobert Gibson pointed out that these shipments in no way impaired tho gold reserves held against the note issue, which to-day stood at 43 per cent. Tho Bank Board was carefully watching .the position, and if national needs demanded it further shipments of gold could bo provided, still leaving the gold reserve against note issue unimpaired. Tho whole movement was directed to meeting accrued or accruing obligations;

Sir Robert Gibson emphasised that Australia was sound and - would overcome her present difficulties. ' Australia's abnormal prosperity had led to extravagance, but those responsible for'the country's stability, were cooperating in this direction, :,nd he had every confidence the position would right itself. The great disparity on the London Stock Market between Australian securities and those of other Dominions was not justified, and those who had the courage to purchase Australian securities at the market values of to-day would probably'have reason to congratulate themselves later. Meantime it was necessary that importi should be kept down- to a minimum until the position was completely adjusted.