AUSTRALIAN FINANCE

Hawera Star, Volume L, 7 August 1930, Page 5

AUSTRALIAN FINANCE

CREDIT IN LONDON

MOB LLISATiON PJ .AN. (UailfcO Cress Asocwiatiou —By r.ietsru(Jopyrijfui.y CANBERRA, Aug. 6. The Ivoaii Council held a vital meeting and adopted a plan lor the mondisation of credit in .London to assist the Commonwealth to meet its obligations promptly. The Prime Minister (Mr. J. H. Soullin) stated that there would he a special conference between the Premiers at Melbourne on August 18 to go into the question of balancing the States’ Budgets. Sir Otto Niemeyer took part in tlie Loan Council’s deliberations, and it is understood he advised that there shoukPbe the strictest supervision over v expenditure.

CENTRAL RESERVE BANK

COMMITTEE’S ADVERSE REPORT

CANBERRA, Aug. 0. The select committee appointed to investigate the Central Reserve Bank Bill recommends that an opinion on the Bill should be sought from Sir Otto Niemeyer, and that the Bill should be deferred till next year. The report sets out that there is an overwhelming volume of evidence opposed to any drastic change in the present critical period. Strong exception was taken by witnesses to the. method of appointing the board ol management, owing to the dangei ot 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 tiiere was unanimity of opinion among witnesses that a Central Reserve Bank was a desirable adjunct to the financial system of the Commonwealth, pi o\ icing; it performed its true functions ol Central Reserve banking and was assured of immunity from political eon,lvol. At the .same time, there was A nothing that a central reserve bank •Wild do at the present time which the Commonwealth Bank was not already doing in co-operation with private banking institutions. 1 ■■■i mi