MAY HARM AUSTRALIA

Evening Post, Volume CXXXVIII, Issue 84, 6 October 1944, Page 4

MAY HARM AUSTRALIA

LAZZARINI BANKING PLAN

(Special P.A. Correspondent.)

. SYDNEY, October 5. The Prime Minister, Mr. J. Curtin, and the Treasurer, Mr. J. B. Chifley! must accept responsibility for the •clotted nonsense" on banking published by the Assistant Treasurer/Mr Lazzarini, said the Leader of the OppoSli^ 0- Menzies. Mr. MeSs added that Mr. Lazzarini proposed by degrees to steal the banks'.businesses as a better proposition than buying them out.

. Mr. Lazzarini's statement on banking was described as "extraordinary and irresponsible" by the'deputy leader 61 the New South Wales Opposition, Mr Mair, when speaking in the State Legislative Assembly. The Assistant Treasurer's idea, he said, was to wipe out the .trading-banks and establish, in their place a Commonwealth Bank. Bankers pointed out that if Mr. Lazzarini's views were circulated abroad they might adversely affect Australia's overseas credit. Australia had the option of redeeming more than £100,000,000 of loans in London next year, bearing: interest at 5 per cent. .

Australia's credit standing had improved so greatly that hopes had been entertained that this debt could- be converted to a rate of less than 3£ per cent. Unless it was made clear that Mr. Lazzarini's views were not those of the Government the conversion operation would be jeopardised,- and Australia's ~- reputation might. suffer even more severely in the United States. ■.:...■

One report from Canberra today says that banking legislation which the .Government plans to introduce next year will not be based on the ideas set out in the pamphlet .published by Mr. Lazzarini, and that influential Ministers do not support the ideas propounded in it.' ..