MR LANG’S LATEST

Hokitika Guardian, 2 May 1931, Page 5

MR LANG’S LATEST

TO RAISE FIVE MILLIONS. CASH GUARANTEES FROM INSURANCE COM PAN I US. (Australian Press Association.) (Received thi- clay at S a in.) SYDNEY, May 1. The Lang Cabinet agreed to a Rill requiring insurance companies to provide* cash guarantees at the StateTreasury. Tlie.so will In* based on the premium incomes of the* respective companies and it is estimated th total amount payable to the Treasury in this manner will be ever five million pounds. Government will allow ordinary bank interest for the custody of this huge hum. Lang pointed out that the main ide; was to protect the interests of invesl ors in consequence of the recent failure of a number of mushroom companies, wherein many hardworking people had lost their life savings. When some of tin* larger companies were acquainted of Lang's proposal to-day. the opinion was expressed that the Premier had alighted on a novel idea of raising a lean at the expense of insurance companies. It was with a certain amount of misgiving that they Would agree to such a proposal in view of tlie Government’s record and recent political happenings,