AUSTRALIAN FINANCE

Evening Post, Volume CX, Issue 147, 19 December 1930, Page 11

AUSTRALIAN FINANCE

BAXKS CALL A HALT. GOVERNMENTS' DEMANDS

Cnltea Press Association—By Electric Teltgraph—Copyright. (Received 19th December, 8 a.m.)! SYDNEY, 18th December.* A solemn warning by the banks of Australia to the various Governments to balance their Budgets and reduce costs has been issued by the Bank of New South Wales on behalf of all the banks. Their statement proceeds:— "Unless effective steps are taken immediately, the time is coming when the banks and other financial instilu« tions will be unable to assist Governments to meet salaries, wages, and other commitments, except at the expense of widening the gap already hi evidence between the costs of and the returns from Australian industries. "Had the policy adopted at thei Premiers' Conference at Melbourne last August been carried fully intoi effect, the drift could have been checked. Unfortunately that policy, is not being fully observed, and the banks are faced with heavy demands to enable Governments to meet their? ■daily obligations. "The continuance of such demands will force upon the banks a drastic curtailment of advances to customers. The banks are unable to accept responsibility for the consequences which must inevitably follow, but iti is most desirable that the public should be warned of the facts. The banks have made efforts unparalleled: in the history of the country to help all classes, and extra assistance in the last three years has reached seventy, millions sterling in accommodation^ granted all round." It is essential therefore than industry and trade should be placed on a] basis that will show a margin for thai living of producer and for the maintenance of solvency in public arid private finances in Australia.