AUSTRALIAN FINANCE

Manawatu Standard, Volume LI, Issue 27, 2 January 1931, Page 7

AUSTRALIAN FINANCE

POSITION OF N.S.W. FEDERAL GOVERNMENT’S AID. ISSUE OF TREASURY BILLS. (United Press Association—By Electric Telegraph.—Copyright.) Received January 2, 8.5 a.m. SYDNEY, Jan. 2. The Commonwealth Government has come to the aid of the New South Wales Government by issuing 1,600,000 Treasury bills. These will form a guarantee to the banks against the sum to be advanced by them to Mr Lang’s Government. THE LONDON ISSUE. SYDNEY PAPER’S COMMENT. Received January 2, 8.5 a.m. SYDNEY, Jan. 2. The Sydney Morning Herald says that the issue in England of five million Treasury bills at .five per cent, reveals that, compared witfi the rate available for first class commercial security, Australia has been compelled to pay dearly for this six months accommodation. Tho market price for the best paper, the Herald adds, is £2 6s 3d per cent so that Australian credit, instead of improving,' has become worse, due possibly to the unsettled political outlook in the Federal sphere and the recent threats of inflation.

REPORT OF MORATORIUM. UNITED STATES PROTEST. Received January 2, 8.5 a.m. NEW YORK, Jan. 1. The publication over the week-end throughout the country of the United States Department of Commerce’s regular trade review from Sydney asserting that, due to the conditions of farmers in New South Wales, a moratorium had been declared until April, 1933 resulted in the Australian office hero’being besieged with inquiries from bankers and business men. These declare that Australian credit is seriously damaged by the use of the word “moratorium.” Canberra has been cabled for detailed information to supply inquirers.