AUSTRALIA’S FINANCES

Evening Star, Issue 20671, 19 December 1930, Page 9

AUSTRALIA’S FINANCES

WARNING BY BANKS GOVERNMENTS MUST BALANCE BUDGETS Press Association—By Telegraph—Copyright. SYDNEY, December IS. A solemn warning by the banks of Australia to the various Governments to balance their Budgets and reduce costs was issued by the Bank of New South Wales on behalf of all tho other banks. Their statement proceeds: “Unless effective stops are taken immediately the time is coming when banks and other financial institutions will be unable to assist the Governments to meet salaries, wages, and other commitments except at the expense of a widening of tho gap already in evidence between the costs and the returns from Australian industries. Had the policy adopted at the Premiers’ Conference in Melbourne last August been carried fully into effect the drift could have been chocked. Unfortunately that policy is not being fully observed, and the banks are faced with heavy demands to enable the Governments to meet their daily obligations. A continuance of such demands will force upon tho banks a drastic curtailment of advances to customers. Hie banks are unable to accept responsibility for the consequences which must inevitably follow, but it is most desirable that the public should be warned of tho facts. Tho banks have made efforts unparalleled in the history of tho country to help all classes, and extra assistance in tho last three years has reached £70,000,000 in accommodation granted all round. It is essential, therefore, that industry and trade bo placed on a basis that will show a margin for tho living of the producer and for tho maintenance of solvency in the public and private finances in Australia.” EXPORT DUTY ON SHEEPSKINS GENERAL SURPRISE EXPRESSED. MELBOURNE, December 18. General surprise was expressed at the Federal Government's export duty of id per lb on sheepskins in face of the adverse report by the Tariff Board. Trade in sheepskins is consequently completely disorganised, and the sales were postponed until to-morrow to enable exporters to consider the position. Tho unanimous opinion after their meeting was that the duty would depreciate tho value of sheepskins throughout Australia to the full amount of the export duty. Tho view was also expressed that the country members of the Labour Party would suffer at the next election for allowing such heavy losses to i bo passed on to the wool growers.

THE EXCHANGE RATE GOVERNMENT’S ATTITUDE. SYDNEY, December IS. A member of the Federal Ministry recently stated that the Government favoured an increase in the exchange rate, but the Acting Prime Minister (Mr J. E. Fenton) now points out that while the Government considers that the rate should be increased control of tho matter rested with tho banks and other largo financial institutions. The Leader of the Opposition (Mr J. 6. Latham) expresses tho opinion that the exchange rate should be reviewed. COMMONWEALTH LOAN A WONDERFUL RESPONSE. CANBERRA, December IS. Mr Fenton announced that cash subscriptions to the £28,000,000 loan already amounted to £17,173,790 and the conversions to £11,393,650, making a total of £28,567,'140, which he described as a wonderful achievement, considering that the loan had been open for only four weeks. He anticipated that tho loan would be oversubscribed by £2,000,000. A NOTABLE VICTORY. BRITISH PRESS COMMENT. LONDON, December IS. Tho ‘ Morning Post’s ’ city editor says: “Tho success of tho Australian loan is a real victory for the sober section of Labour. It will strengthen confidence and will benefit tho whole financial situation.” ' An editorial says: “ There will ho nothing hero but unstinted admiration for Australian statesmanship and patriotism upon tho achievement of a notable victory.” ' NEW SOUTH WALES ANOTHER SHOCK FOR TAXPAYERS SYDNEY, December 18. Tho taxpayers of New South Wales received another shock to-day when the statement was published that tho Lang Government is considering a direct levy of 2s iu tho £ on all incomes over an amount to bo determined, in addition to tho Is in the £ on wages already passed by tho Assembly. RATIONING OF WORK PROHIBITED BILL PASSES ASSEMBLY. SYDNEY, December 19. (Received December 19, at 10.45 a.m.) The rationing of employees, except by tho Crown, will be prohibited as the result of an amendment to tho Fortyfour Hours’ Bill carried in tho Assembly. Tho members of the police force wdl bo tho only public servants to escape the Government’s rationing policy* The Bill passed all stages of

tho House, which adjourned until January 20. Tho Legislative Council passed tho Unemployment Relief Tax Bill, the Prevention and Relief of Unemployment Bill, and tho State Lotteries Bill, and adjourned till January 20. BOTH HOUSES ADJOURN .VJSTDI* CANBERRA, December 19. (Received December 19, at 10.5 a.m.) Both the House of Representatives and the Senate have adjourned “ to a date to be fixed.”