AUSTRALIAN FINANCE

New Zealand Herald, Volume LXX, Issue 21515, 12 June 1933, Page 9

AUSTRALIAN FINANCE

DEFICITS OF STATES

ASSISTANCE FROM BANK

PREMIERS IN CONFERENCE COMMONWEALTH CRITICISED By Telegraph—Piesa Association—Copyright (Received June 11, 5.5 p.m.) SYDNEY, June 11 The .Melbourne correspondent of the Daily Telegraph says a dramatic turn was given to the financial accommodation proceedings yesterday when the .State premiers met independently of the Commonwealth representatives to discuss* the Federal Government's attitude at the Premiers' Conference. Concerted action was decided upon to obtain what the States consider to bo their just rights in the present negotiations. The representatives of the States were critical of the Commonwealth Government's attitude concerning the surplus, the Budgetary deficits, and its proposals for a constitutional convention.

Other despatches from Mel bourne state that the Loan Council communicated with the board of the Commonwealth Bank asking for accommodation to cover the States' deficits for 1933-34. In reply the board agreed to finance the States' deficits to the extent of £8,500,000.

Sir Walter Massy Greene, chairman of the Loan Council, announced that the board had desired the council to defer its request for financial accommodation pending the outcomo of future conversions by which, it was hoped, considerable relief would be afforded.

It is now regarded as likely that the State deficits, which it was originally anticipated would total £9,000,000, will not exceed £7,000,000. The bank has undertaken to discount Treasury bills to finance these deficits and a substantial sum is likely to be available for the continuance of public works.

The Commonwealth Government announces its intention of making a special grant of £300,000 to the smaller States, apart from their share of the finance to be provided by the Commonwealth Bank.

NEW SOUTH WALES IMPROVED POSITION UNEMPLOYMENT REDUCED (Received June 12. 12.5 a.m.) SYDNEY. June 11 Since the present Government of New South Wales was elected 12 months ago unemployment has been reduced 25 per cent and dole relief has been reduced 50 per cent. The Government's indebtedness overseas has been brought down more than £1,000,000 a year. It is announced that in the ensuing 12 months more than £7,000,000 will be devoted to unemployment relief works, which it is hoped will still further stimulate business activity.