LOAN FOR N.S.W.

Grey River Argus, 4 May 1931, Page 5

LOAN FOR N.S.W.

FROM INSURANCE COYS Lang’s New Move (Aus. & N.Z. Cable Assn.) SYDNEY, May 1. The Lang Cabinet agreed to a Bill requiring insurance companies to provide cash guarantees at the State Treasury. These will be based on the premium incomes of the respective companies, and it is estimated that the total amount payable to the Treasuryin this manner will be over five million pounds. The Government will allow ordinary bank interest for the custody of this huge sum. Mr Lang pointed out that the main ■dea was to protect the interests of investors in consequence of the recent failure of a number of mushroom companies wherein many hard-working people lost their life savings. When some of the larger; companies were acquainted with the Government’s latest proposal to-day the opinion was expressed that the Premier had alighted on a novel idea of raising a loan at the expense of the insurance companies. It was with a certain amount of misgiving that they would agree to such a proposal in view of the Government’s record, and. the recent political happenings. The “Labour Daily” says that Nationalist expectations were shattered when the State Labour Party in caucus decided not to have a split to make an anti-Labour holiday. .There was a sharp brush between the Premier and Mr Kelly, but the trouble was smoothed over, however, and no motion of censure was passed on Mr Kelly.

insurance coys. WOULD OFFER BONDS INSTEAD OF CASH. SYDNEY, May 3. The Lang Government’s new plan to compel th.e insurance companies to lodge cash guarantees is causing the utmost concern, following ;so closely upon the Savings Bank debacle. The insurance companies arc offering no objection to the general principle of lodging securities as a safeguard against fraud by thp mushroom companies, but they declare there is something sinister in the proposal that hard cash should bo provided for the

Government, instead of Government bonds. The holdings of the life insurance companies in New South Wales bonds amount to £7,427,000.