Grey River Argus FRIDAY, APRIL 24th, 1931. N.S.W. SAVINGS BANK.

Grey River Argus, 24 April 1931, Page 4

Grey River Argus FRIDAY, APRIL 24th, 1931. N.S.W. SAVINGS BANK.

I While it would be a mistake to attach to Mr Lang and his administration the whole responsibility 'for the surprising, if temporary suspension of payment by the New South Wales Government Savings ! Bank. it would be futile to deny’ I they must shoulder the main reIsponsibility. Had they not thrown on the Federal Government the obligation to find the interest for 'their State’s overseas creditors, there probably would have been no suspension, although it is admitted by the Sydney press that the politicians of all parties are more or less blameworthy for the undermi ining of public confidence, which many months ago began the run. It was at the N.S.W. general election that his opponents raised the cry that the views of Mr Lang would cause the bank to,fail, and ever since those opponents have regarded the run as an eventual Iweapdn against Labour, and have their attitude aggravated it. I But so has Mr Lang. He has done inothing at all to restore confidence, although he may have done a lot. to open the public eye to the necessity for some such readjustment of interest as Britain has Jbeeii bound to seek in the case of iher debt to the United . States. I There may be a surprise in the 'British Budget next week, such as

will convince people here of the instability of the whole edifice of imperial capitalism under the stress of present day usury. It is rather humorous to note the somersault of London capitalist opinion regarding the Federal Labour I Government’s fiduciary note isIsue proposal. Mr Theodore foreicasted some such trouble as the ■present one in the absence of adequate credit in Australia. It is Inow conceded in London that the 'note issue proposed is the only |way out. Mr Lang has failed to satisfy the demands of interest, [but be has openly declared, his I conception of duty to be not the ■satisfaction of such an obligation so much as a demonstration of the ultimate impossibility of so doing! And he has gone a good distance towards proving his point. It is worth noting that our own Government’s proposal to use the Savings ! Bank’s profits in a dangerous manner has created apprehension in the legislature and that the Prime Minister has pulled in his horns. He is going to give the matter'a second thought, real-

’jif.ing doubtless that in the ner- ■ vousuess prevailing the institution Islands otherwise to suffer after the manner of the New South Wales,. Savings Bank. Moreover, Mr Forbes ..differs from Mr Langin that his aim to placate Sliyloek, iiwhoni he is shortly tapping for (another little loan if the terms are 'not too stiff. As-showing that psy- , I etiological factory- riiainly have ; paused tile New South Wales troth ble, it is conceded that the. Say■ings) Bank -has vast assets which, lowing to trade depression and . | commercial pessimism, are at'pres'eiit in a frozen, 'or uurealisabTe : form. It is. tip'same with vastly ‘ [greater blocks of eapital in Britlain, where the only remedy would [be ,<in increase.in the national camling power.' It may be,true to say ‘that political influeueesthave had [as big a part- «s financial in the |New Sbuth Wales’ trouble; blit if ■so ail. pal-ties then are responsi[ble, ,and. so far as the financial I community "is concerned, it. is at ■ lea'st. -likely that they regarded , with entire equanimity the diffi- : cutty of a State competitor. It is : therefore instructive to observe how the Connnomvealth Bank is able'to solve the difficulty in a way; that could never have been hoped for if there were only privatyjjanks on which to rely for support. £ - T . ..--.n—.