LINES OF POLICY

Evening Post, Volume CXL, Issue 64, 13 September 1945, Page 7

LINES OF POLICY

COMMONWEALTH BANK

SYDNEY, September, 12. The general public interest would continue to be the only consideration of the Commonwealth Bank in exercising its increased powers, said the governor of the bank, Mr. H. T. Armitage He was referring in the banks annual report to the enlarged powers given the bank by recent legislation. Mr. Armitage said it was no new departure from central banking practice to expect the central financial institution of the country to follow the broad lines of policy laid down by the Government, for which the Government must take the final responsibility. The report stresses these points—the accumulated readily spendable savings will be potentially dangerous to price stability during the post-war transition period; continued restraint on spending was necessary to prevent the forcing up of prices of goods in short supply; further, permanent increases in Treasury bill issues should be avoided. The policy of cheap money should continue because a rise in interest rates would make the problem of public debt more difficult, would be of disadvantage to the people who had subscribed to war loans, and would aggravate the difficulties of 'the housing problem.