AUSTRALIAN BANKING.

New Zealand Herald, Volume LXVI, Issue 20421, 25 November 1929, Page 11

AUSTRALIAN BANKING.

NOTE ISSUE AND EXCHANGE

GOVERNMENT'S PROPOSALS.

JUNIOR MINISTER'S FORECAST.

By Telegraph—Press Association—Copyrigh (Received November 24, 6.5 p.m.)

CANBERRA, Nov. 24. The Labour Ministry's new banking proposals involve tho removal of the present restrictions on the proportion of notes to cash reserve and the transfer of the power to fix exchange rates with London from tho Associated Banks to the Commonwealth Bank. Mr. F. Anstey, Minister of Health, forestalled Mr. E. G. lheodore, who is the Treasurer, with an explanation of the Government's intentions.

Mr. Anstey declared that the banking institutions must cease to bo the masters and must become the servants of industry. He stated that exchange rates at present are not fixed in accordance with movements of money and credit between Australia and Loudon, but largely on the result of secret understandings among tho private banks.

'ln these periods of depression it is essential," he added, "that advances should bo made on good security. The Labour Party will enablo tho Commonwealth Bapk to have the opportunity to provide a great service to tho nation and the private banks must follow suit or perish. Thus industry will be promoted, employment follows and prosperity is the outcome."

America's prosperity, Mr. Anstey claimed, is largely based on the progressive policy of her financial institutions.

NEW TAXES CRITICISED

NO CHANGE OF POLICY,

BANKING BILL MISGIVINGS.

(Received November 24. 6.5 p.m.)

LONDON, Nov. 24

The Financial News states that the Australian Government's proposed supertax on incomes will accentuate the com-, plaint of double taxation from those liable both here and in Australia. The effects of the increased customs duties may be considerably more serious. Manufacturers here will necessarily be injured while from Australia's standpoint the tariff changes will perpetuate the policy which has already been condemned as contributing to that failure of the national income to expand, which is the root of her financial difficulties.

The newspaper adds it awaits details of the banking proposals and says the disturbing element lies in the source from which they proceed and concludes: "Mr. Theodore has admitted that Australia's credit is somewhat impaired and his statement has not given grounds for thinking he is on the right road to restore it.''