PROPOSAL IS A SHOCK TO LONDON

Evening Star, Issue 26185, 21 August 1947, Page 7

PROPOSAL IS A SHOCK TO LONDON

LONDON,! August 20.

The statement that the Australian Government is preparing an actual Bill to nationalise Australian banking came as as undoubted shock in. London, says the ‘ Financial Times.’ The indications are that such a measure will be strenuously opposed by the banks and other interests., The point raised in London is whether the proposals to nationalise banking go outside the mandate on which the Government was elected.

The view is expressed that there is no justification the nationalisation move in view of the powers which the Government already possesses. jTliese powers of control over the Australian banking system go far beyond anything that -has resulted from nationalisation of the Bank of England. The Government’s plans are sure of a stormy passage, adds the 1 Financial Times.’ ‘ The recent High Court decision ‘ was a setback to the Government, and an equally vital constitutional principle is involved in the hew proposals If the High Court holds that the Government’s proposed action involves encroachment on the private and financial affairs of individuals, then a ; referendum would appear probable, and the Australian Government has not been particularly successful in past referendums.