COMPULSORY LOAN.
MB. LANG'S LATEST IDEA.
LEVY ON INSURANCE FUNDS. OVER £5,000,000 SOUGHT. CASH DEPOSITS PROPOSAL. By Telegraph—Press Association—Copyright. (Received May 1, 0.58 p.m.) SYDNEY. May 1. The New South Wales Cabinet has agreed to a bill requiring insurance companies to provide cash guarantees at the State Treasury. These will be based on the premium incomes of the respective companies, and it is estimated tho total amount payable to tho Treasury in this manner will be over £5,000.000. The Government will allow ordinary bank rate of interest for the custody of this huge sum. The Premier, Mr. J. T. Lang, said the main idea was to protect the interests of investors in. consequence of the recent failure of a number of mushroom companies in which many hardworking people had lost their life's savings. When some of the larger companies were acquainted with the Government's latest proposal to-day, the opinion was expressed that the Premier had lighted on a novel idea of raising a loan at the expense of the insurance companies. It would be with a certain amount of misgiving that they would agree to such a proposal in view of tho Government's record and recent political happenings.
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Bibliographic details
New Zealand Herald, Volume LXVIII, Issue 20862, 2 May 1931, Page 11
Word Count
198COMPULSORY LOAN. New Zealand Herald, Volume LXVIII, Issue 20862, 2 May 1931, Page 11
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