FINANCING AUSTRALIAN EXPORTS

Nelson Evening Mail, Volume LVI, 13 November 1922, Page 7

FINANCING AUSTRALIAN EXPORTS

(By Electric Telegraph.—Copyright.) (Australian & N.Z. Cable Association.)

_.. v . LONDON, Nov. 11* Ihe lunancial News, discussing proposals for financing Australian exports, states that two factors which had given rise to ihe present state of affairs are firstly, the Australian import tariff; secondly the ban upon the gold movement, The problem, stated simply, is how, despite them, to carry on exchange business with the least loss to customers and traders. We fail to see why the Commonwealth Bank and the Australian banks holding balances in London cannot solve the question between them. If the Commonwealth Bank were to accept bills on other Australian banks as cover to the extent of the overseas balance available the balances in the form of further note issue would becomeavailable in Australia forthwith. There is no reason other than a statutory restriction why the Commonwealth's Bank's cover should remain limited to gold coin and bullion or a. specified gilt-edged invested. First class bank bills are gilt edged securities in everything save the name. In fact they are the best possible securities. The situation when analysed disclosed a flaw in the Commonwealth Bank Act involving limitation which hinders the banks doing Australian business from co-operat-ting together as fully as they might and ought. Issues of notes secured on bank bills representing balances available abroad would automatically be retired as the bills matured. By these means exchange would readily, bt steadied.