GRAVE APPREHENSION

Evening Post, Volume CXIII, Issue 25, 30 January 1932, Page 13

GRAVE APPREHENSION

COMMONWEALTH BANK

SIZE OF FLOATING DEBT l

MELBOTJBNE, 29th January.

A surprise at the meeting of tht Loan Council to-day was an announce* ment by the Now South Wales Premier, Mr. J. T. Lang, that unless hU Government received immediately an ■<!- vanco of £500,000, it must default in its overseas payments, the total actually' due being £900,000. A letter was received from Sir Bobert Gibson, chairman of the Com^ monwealth Bank, emphasising that the floating debt was assuming such proportions as to cause the Bank Board the gravest.apprehension. "Unless measures are adopted to deal with the situation, the present monetary system and financial resources of the country must break down under the strain, resulting in the most serious financial consequences," stated the let-* Jer. "It is needless to point out that the board cannot control the situation except by refusing to provide national finance."

Sir Bobert Gibson added that white the board appreciated what had already been done in the way of economy, it was of opinion that the whole position should be reviewed without delay.