COMMONWEALTH BANK

Evening Post, Volume CXXI, Issue 78, 1 April 1936, Page 11

COMMONWEALTH BANK

OPINION UPON FUNCTIONS

SYDNEY, March 31,

Sir Ernest Riddle, Governor of the Commonwealth Bank, gave evidence before the Royal Commission on the monetary and banking systems of Australia today. ■ . He said that the function of the Commonwealth Bank was not absolutely to control the aggregate volume of credit but to regulate it within the limits of its powers, statutory and practical, in the interests of the community. He did not think that the bank's function was to control or influence the distribution of credit as between industries, L-.it the influence of the Commonwealth Bank might at times be exerted on trading banks in order to effect a more desirable distribution of credit. He was of the opinion that, there were still some gaps in the Australian financial structure for the provision of long-term capital for small industries, and it might be useful to establish facilities for the making of long-term loans. The commission adjourned.

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