FINES FOR BANKS

Hawera Star, Volume L, 26 March 1931, Page 5

FINES FOR BANKS

PENALTY OF £IOOO PROVIDED INTEREST REDUCTION MEASURE F EDER A L TREASURER’S. SCJHEME ;

(United Press Association —By Electric Telegraph

Copyright.) Received 10.30 a.m. to-day. CANBERRA, March 26. Mr E. F. Theodore (Federal Treasurer), in moving the second leading l of the Bank Interest Bill in the House of Representatives, said that if interest rates were reduced one per cent industry in Australia would ■ save about £4,000,000 per year. In discussions with the Government the banks raised no objection, to the principle that interest rates be re-, duoed. The Government, however, was unable to accept dictation from the banks as to its policy, and because the banks had failed to take the initiative in reducing interest rates the Government had found it necessary to proceed with this measure. A fine of £IOOO was provided for as a penalty for charging a rate in excess of the 1 maximum under the. Bill. . One proposal in the measure is. that a hoard of five members be appointed with power to make recommendations to the Treasurer in the following direction : Firstly, a maximum rate of interest which may be payable within the Commonwealth on bank deposits, and on advances by banks by way or loans, overdrafts or otherwise, and secondly a maximum discount rate which mav be charged by banks on bills, drafts and other securities.