BANKS ISSUE WARNING

Hawera Star, Volume L, 19 December 1930, Page 9

BANKS ISSUE WARNING

AUSTRALIA URGED TO ACT. NEW BASIS FOR INDUSTRIES. (United Press Association —By Electric Telegraph Copyright.) SYDNEY, Dec. 18. 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 to-day on behalf of all the other banks. “Unless effective steps l are taken immediately,” the statement says, “the time is coming when the banks and other financial institutions will be unable to assist the Governments to meet salaries, wages and other commitments except at the expense of widening the igap already in evidence btween the costs of and the returns from Australia industries. “Had the policy adopted by the Premiers at the conference in Melbourne last August been carried fully into effect the drift could have been checked. Unfortunately that policy was not being fully observed and hanks are faced with heavy demands to enable the Governments to meet their daily oblgations. The continuance of such ,demands will force upon the bank*! a drastic curtailment of advances to customers. , “The banks are unable to necept responsibility for the consequences which must inevitably follow, but it is most desirable that the public should he warned of the facts. ‘‘The hanks have made efforts unparalleled in the history of the country to help all classes, and extra assistance in the last three years lias reached £70,009,000 in accommodation granted all round. It is essential, therefore l , that industry and trade should he placed .on a basis that will show a margin for the living of the producer and for the maintenance of solvency in the public and private finance of Australia.”