AUSTRALIA’S FINANCES

Evening Star, Issue 20556, 7 August 1930, Page 11

AUSTRALIA’S FINANCES

THE CENTRAL RESERVE BANK SELECT COMMITTEE’S REPORT Press Association—By Telegraph—Copyright. SYDNEY, August 6. The Select Committee which was appointed to investigate the Central Reserve Bank Bill recommends that an opinion on the Bill should bo sought from Sir Otto Niemeyer, and that the Bill should bo deferred till next year. The report sets out that there is an overwhelming volume of evidence opposed to any drastic change in the prer sent electrical period. Strong exception was taken by witnesses to the method of appointing the Board of Management owing to the danger of the exercise of undue political influence, and the fear was expressed; that the powers given to the bank to make advances would lead to unsound practices. The committee was convinced that no good purpose could be served by such a bank, while considerable harm could result from its establishment. '

The committee further reported that there was unanimity of opinion among the witnesses that the central reserve bank was a desirable adjunct to the financial system of the Commonwealth, providing it performed the true functions of central reserve banking and was assured' of immunity from political control. At the same time there was nothing that a central reserve bank could do at tho present time which the Commonwealth Bank was not already doing in co-operation with private banking institutions.

MOBILISATION OF CREDIT

LOAN COUNCIL’S PLAN.

CANBERRA, August 6,

Tho Loan Council held a vital meeting, and adopted a plan for the mobilisation of credit in London to assist the Commonwealth to meet its obligations promptly.

The Prime Minister stated that tccre would he a special conference between the Premiers at Melbourne on August l 8 to go into the question of balancing the States’ Budgets. Sir Otto Niemeyer took part in the Loan Council’s deliberations, and it is understood that he advised that there should .be strict supervision over expenditure.

SALES TAX BILL,

SECOND READING PASSED,

CANBERRA, August 6

The House of Representatives passed the second reading of the Sales Tax Bill by 40 votes to 25, despite considerable protest by many members of the endless confusion that this form of taxation would create among business men.