AUSTRALIAN FINANCE.

New Zealand Herald, Volume LXVIII, Issue 20979, 16 September 1931, Page 9

AUSTRALIAN FINANCE.

UNITED HELP OF BANKS. MONEY FOR PUBLIC WORKS. (Received September 15, 10.35 p.m.) MELBOURNE, Sept. 15. The press representatives who are attending the Premiers' Conference report (hat the trading banks agree that they must support the Commonwealth Bank so as to enable it to give the maximum amount of relief to the Governments. This }vill bo done -in such a way as not to 0 endanger the general financial position. The trading banks are satisfied that the Commonwealth Bank is handling the situation witli conspicuous ability and is unlikely to cause the slightest embarrassment. l It is also understood that the trading banks hold the view that disunity at the present stage on the part of the banking institutions might bring about a disaster. Thus the banks are prepared to continue to find money for ordinary works, which arc estimated to require £9,000,000, toward which the Commonwealth Bank is prepared to find £2,500,000. The banks realise that it would add materially to the distress of the community if all public works were suddenly stopped.

The total loan requirements of the seven Australian Governments for the current financial year amount to £17,000,000, the greater part of which it was hoped to obtain from the banks, through the Commonwealth Bank. This sum of £17,000.000 is made up of £9,000,000 for the ordinary capital works programme of the Commonwealth for 1931-32, £5,000,000 for the, special works programme for unemployment relief, and £3,000,000 for assistance to wheat-growers. Of the £9,000,000 for the ordinary works programme, the Commonwealth Bank Board has already advanced or promised £2,250,000, leaving £6,750,000 for the completion of this programme, or a total of £14,750,000 still required for the works programme, the unemployment programme, and for wheat-growers.