Inflationary Trend Pronounced—Chifley

Northern Advocate, 3 December 1947, Page 5

Inflationary Trend Pronounced—Chifley

CANBERRA, Wed. (11.30 a.m.).—The large amount of money flowing into the hands of the public in various ways was causing a pronounced inflationary tendency, said the Prime Minister (Mr Chifley) in the House of Representatives. The tendency could be aggravated unless a close check was kept in bank advances. He was replying to a question by Mr Holt (Liberal), who referred to Press reports that trading banks were recently instructed to restrict in some directions advances for developmental purposes. Mr Chifley said that the Commonwealth Bank had examined the matter of advance which had increased by £(55,000,000 since December. As a great deal of public money was available for investment it was considered that in many cases, instead of obtaining further bank advances, companies should have increased their capital. Bank advances had also been made from the production of certain commodities on a scale far beyond the capacity of the country to absorb them. BANK ACT The application to the High Court for an injunction to restrain the Federal Government from putting the Banking Act into effect was adjourned yesterday by Mr Justice Dixon until December 15. 1 Counsel for the Federal Government gave an assurance that no action would be taken by the Treasurer to put the Act into operation without 14 I days’ notice to the plaintiff’s. | The act is being challenged by the State Governments of Victoria and ( South Australia and by the private trading banks.