LABOUR FINANCE

Evening Post, Volume CXII, Issue 96, 20 October 1931, Page 10

LABOUR FINANCE

GOVERNMENT AND BANKS

NATIONALISATION POLICY

t "Evening Tost," 20th October. ; In an endeavour to remove misapprehension from the public mind the National Bank oC Australasia contradicts statements that have been made from time to time in the Press that large amounts have been advanced by the banks to assist the Government through the present period ol adjustment , . It is pointed out that these amounts have been advanced by the Commonwealth Bank in Australia by the English banks transacting London business with Austraiian Governments in London; and by the Australian trading banks. ■ The National Bank explains that the Commonwealth Bank acts as banker to the Federal and State Governments of Sjoutn Australia, Western Australia, Queensland, and Tasmania. The Victorian Government's banking business is distributed among the associated trading banks in victoria; in New. South Wales the State banking business is distributed between the Bank of New South Wales and the Commercial Banking Company of Sydney. In terms of recent arrangements the trailing or commercial banks aye co-operating jib far as possible with the Commonwealth Bank by taking up blocks of Treasury bills from thu central institution, such bills having been issued to provide necessary can-y-on funds to the various tiovernments. This constitutes the advances made to or on account of the various Governments by the trading banks." The statement concludes: Trading banks share in this section of governmental finance only to the best of their ability and consistent with a due regard for the needs of their business." It is pointed out by the Canberra correspondent of the "Sydney Morning Herald" that although it is certain, that the Control'of banking by the Commonwealth Government will be made the principle issue by the SculJin Ministry when the next Federal elections take place,, no immediate attempt to put such a policy into effect: is respected. '. Having failed in its previous efforts to pass a Central Reserve Bank Bill and an amending Commonwealth Bank Bill through the Senate, the policy of the Ministry is to withhold further proposals for obtaining control of banking until the time is- thought opportune for a General ."Election. When that time arrives the Ministry will formulate its policy and appeal to the electors for its endorsement. , Present indications are that the next General' Election will take place in May of next year.

: Mr. Scullin recently intimated to a caucus meeting that the present was an inopportune time to attempt to give effect to the full banking policy of the Labour Party, and he counselled refraining from any action of the kind until the party could appeal confidently to the electors.