COMMENT OF PRESS

Evening Post, Volume CXI, Issue 94, 22 April 1931, Page 9

COMMENT OF PRESS

EXODUS OF CAPITAL

LANG POLICY, TO BLAME

(Received 22nd April, 9.30 a.m.)

SYDNEY, This Day.

The "Sydney Morning Herald" says that the suggestion for the absorption of the Now South Wales Government Savings Bank by the Commonwealth Savings Bank has arisen because of substantial withdrawals from the State Bank oxtending over a period commencing October last, and as new deposits have not come in as freely as heretofore, there has been a drain on the cash resources of the bank, It has

been recognised that the economic conditions prevailing have affected all savings banks in Australia for the past year or so, causing 'abnormal withdrawals, of deposits. In other States; however, the' difficulty recently has been overcome by a lessening in tho rate of withdrawls and an increase in deposits, but the unfavourable experience of the Savings Bank of Now South Wales has been intensified during the past few months. Tho net result has been a weakening of bank reserves, oven though the bank remains in a solvent condition. , . ' FLOW OF FUNDS. The ' 'Daily Telegraph says: ''For months there has been a steady flow of funds from this State to other States. Political developments here have caused consternation among investors, whoso main concern is always security for their1 capital. Bankers have admitted" that capital is still leaving New South Wales, though they are jiot in a position to state what amount would bo represented by transfers-during tho last few months. Mr. Lang's-pro-posed reduction in intorest rates has led to a flight of capital, and his subsequent repudiation of interest payments in London has intensified the flow of money from Sydney to Queensland and Victoria. , ■ , ,