CONTROL OF FINANCE

Evening Post, Volume CXXXIII, Issue 43, 20 February 1942, Page 5

CONTROL OF FINANCE

AUSTRALIAN PLANS

SYDNEY, February 18,

Regulations implementing the Commonwealth Governments plan for the complete mobilisation of Australian resources and man-power, which was outlined by Mr. J. Curtin on February 17, were gazetted today and become immediately operative. '

The plan gives the Government control over finance in such a way as to limit profits to an average rate oi! 4 per cent, on the capital employed, as defined by the Wartime Companies Act.

Profits in excess of this amount will be payable as taxation. The tax will apply to all companies or other business the income from which, after payment of taxation, is in excess of £1500 a year inclusive of reasonable remuneration to the proprietor.

The gazetting of the Regulations brings free trading on the Stock Exchanges to an abrupt end, but trading in Commonwealth % bonds and semiGovernmental issues will continue along the usual lines. This will necessitate some change in the Stock Exchange routine, which will be determined within a few days.

The Federal Treasurer, Mr. 3. B. Chifley, said today that the Regulations would permit a transfer of shares and stock debentures which is necessary to complete a transaction entered into prior to the announcement of the Regulations.

The Regulations also peg wages and rents as at February 10, but prohibit dealings in land property in any way whatsoever.

The Government has no intention of interfering in any way with bank deposits.