FEDERAL FINANCE
THE BANK’S ULTIMATUM. MR THEODORE’S LETTER ATTACKED. COMMENT BY MR C. H. TRANTER. (United Press Association —By Electric Telegraph)—Copyright.) MELBOURNE, April 19. Replying to Mr E. G. Theodore’s letter to the Commonwealth Bank Board, Mr C. H. Tranter, chairman of the Associated Banks, described it as a clever piece of political propaganda. It ignored tlie actual position and contained much clap-trap. Mr Tranter pointed out that the credit of the trading banks had been strained by £6,785,840 in. the past eighteen months, within which period the resources of those banks had decreased £23,000,000 by a reduction in deposits. Indeed, credit had been strained to a point beyond which it would be unsafe to trade. The Federal Treasurer’s letter would further tend to disturb the public. A Sydney message states : Although the Commonwealth Bank s ultimatum to the Federal Government is the subject of wide discussion, the Prime Minister, Mr J. H. Scullin, has given no indication of the Government’s financial resources. He has definitely stated that the country need not expect an election inside three months. Commenting on the situation, the Labour Daily says, “All masks having been thrown off by the financial dictators and their servants, the complete insolvency of all the Australian Governments within a week or two is now assured.” Editorially the paper says: “The vultures are gathered ior the feast and are hovering over the hotlv-as-sailed figure of Labour which they hope will soon fall, riddled with the spears of its natural enemies and the poison darts of its renegades.” Mr J. A. Lyons describes Mr Theodore’s lettter to the Commonwealth Bank as political propaganda. At the same time it reveals a base .attempt on the part of Labour to crush the present methods of banking and deal a death-blow to the Commonwealth Bank. MR LANG DENOUNCED. SYDNEY, April 19. The Federated Engine-drivers and Firemen's Association —it has a membership of 14,000 —has decided unanimously to throw its weight behind the Scullin Government in rejecting the Lang plan without argument. It is expected that another important organisation—the Australian Workers’ Union —will follow suit at an early date as the leaders have alreadv denounced Mr Lang as a wrecker of the Labour movement. „ LONDON COMMENT.
LONDON, April 18. The Dailv Telegraph, in an editorial. says: '“Events at Canberra have rushed ' suddenly to the political climax to which they have been leading during the past two months. Mr Latham might well describe Mr Theodore's statement in reference to the Commonwealth Bank as one of the most important events in the history of the Commonwealth. Mr Scullin’s Government apparently was prepared to continue adding to its overdraft rather than adopt necessarily severe measures of retrenchment. An inevitable halt has now been called to that rapid inarch toward insolvency.” The Financial News says: “Banking circles in London express the opinion that if the Commonwealth Bank adheres to its decision, the only immediate effect will be the cessation of certain public works.” Other quarters regard the news as favourable, necessitating retrenchment and hastening the downfall of the Government.
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Bibliographic details
Manawatu Standard, Volume LI, Issue 118, 20 April 1931, Page 7
Word Count
509FEDERAL FINANCE Manawatu Standard, Volume LI, Issue 118, 20 April 1931, Page 7
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