TREASURY BILLS

Evening Post, Volume CXV, Issue 58, 10 March 1933, Page 7

TREASURY BILLS

INCREASED AUTHORITY

PURCHASE OF EXCHANGE

After a short discussion the legislative Council this morning agreed to the amendments inserted by the House of Representatives last night in the Finance Bill (No. 4). ,: In moving that tho amendment be agreed to, the Minister of Education (the Hon. R. Masters) said it was intended to take further powers to deal with the export of silver coin, and the Bill gave the right of forfeiture of any silver which an attempt was being made to export. There was also a clause making arrangements for the issue of Treasury bills to cover exchange transactions, and the Tent restriction legislation iwas ' being extended until next October. The Hon. J. A. Hanan said that strong criticism had been directed some years ago to the issue of Treasury bills. It was regarded as a system of borrowing which did not commend itself to those who were in the lower house at that time. It was plain that the Treasury bills might not be repaid, but might be added to the public debt. , He recognised that departures from hitherto sound principles might be justified in times of stress; but ho would like to know tho amount of Treasury bills outstanding and the amount of the floating debt. ' In Australia there was a big floating debt wbioh would be a cause of embarrassment in the future. The Rt. Hon. Sir Francis Bell said that during a speech by the Hon. C. J. Carrington, while the latter was referring to the' honorarium of members of tho Legislative Council, he (Sir Francis) had been reported as interjecting, "Are you worth it?" What he did say was "Are we worth it?" FOR A PARTICULAR PURPOSE. In reply, Mi*. Masters said that the Treasury bills under consideration were for the purpose of financing exchango transactions only. It would, bo recognised that during the export season there would be a surplus of oxchangos, and tho Government was required to purchase these. Treasury bills would be issued for the purpose, and it was possible that when tho oxport season ended and tho importers bought their exchango requirements all the Treasury bills would be redeemed. There was no doubt that tho authority for the issue of Treasury bills had been increased in recent times, but it had to bo remembered that there were not the surpluses in the Treasury that thero were in prosperous times. In Great Britain the Government had power to issue Treasury bills up to the total amount of revenue. Mr. Masters said that his attention had been drawn to a denial in the Press to his statement made yesterday that the doctors had refused to accept a registration fee of 5s on the ground that it was undignified and that the medical profession had recommended a fee of £1 Is. His authority for the statement was the Minister of Health (the Hon. J, A. Young), who had consulted the Medical Council on the matter, and Mr. Young had reiterated his statement this morning. The amendments were agreed to\