COMMONWEALTH BANK

Evening Post, Volume CXI, Issue 71, 25 March 1931, Page 9

COMMONWEALTH BANK

TO MEET OBLIGATIONS THEODORE EXPLAINS BILL United l'rcss Association—liy Klcctric Tclo(,Till)Il —CopjTli'lll. (Received 251h March, 11 a.m.) CANBERRA, This Day. The Government's new financial [proposals were outlined by Mr. Theodore in moving the second reading of the Commonwealth flank Amendment Bill, authorising the Government to use the bank's present gold reserve to meet urgerit outstanding liabilities, and fixing the minimum issue of Australian notes at £60,000,000. The explanation for the measure was that Sir Robert Gibson, chairman of the Bank Board, had indicated thai they were approaching a position where shipments of gold to meet London indebtedness would inL'rude on the amount the bank legally required to retain in its vaults. "11l is. far belter," said Mr. Theodore,l "(o make use of this gold in London j than to have it in the vaults wherej if is performing no diseernibly use-j Cut purpose/ j The Federal Treasurer said that unless gold were shipped, Australia •must default on its obligations falling due, as it could not raise loans an London or get credits there to ■carry on. Since January, 1930, £28,470,000 worth of gold had been shipped, and the Commonwealth Bank now held £15,335,000, and £1,932,000 worth had been produced in 1930. The debate begins when the House resumes after Easter. It is stated at Canberra lliat the Opposition is perfecting its plans for an early election. Mr. Bruce will contest his old seat, Flinders, as a (Nationalist.

A Bill to empower the Government to require tlio Commonwealth Bank Board to hand over the present gold reserve, if necessary, to disehargo urgent indebtedness overseas, was introduced by tho Federal Treasurer, Mr. E. G. Theodore, in the House of Representatives. Tho Bill also will remove tho obligation to pay gold for Australian notes.