EIRE WARNED

New Zealand Herald, Volume LXXV, Issue 23111, 9 August 1938, Page 10

EIRE WARNED

'PUBLIC SPENDING EXCEEDING INCOME BANKING COMMISSION GOVERNMENT POLICIES By Telegraph—Press Association —Copyright (Received August 8, 7.30 p.m.) DUBLIN, August 8 Financial measures to establish control of public finance are recommended in a majority report by the Banking Commission set up in 1934. The report declares that Eire is spending above her income and warns the Government against further increases in the outstanding 'debt. The report recommends: —(1) The Irish and English pounds should bo maintained at the existing parity; (2) the existing currency commission should become a central banking authority; (3) no increase should be made in the existing deadweight debt, on the contrary, it should be reduced as soon as possible and also tho annual expenditure should be strictly controlled; (4) Government borrowing proposals should be closely examined for possible monetary and financial reactions; (5) regular consultations should be held between tho Government and tho monetary authority on the currency aspects of the Government policy. The appointment of a new banking commission to complete the work begun by the Parker Willis Banking Commission of 1926 was announced by Mr. Sean McEntee, then Free State Minister of Finance, on October 27, 1934. The terms of reference were: To examine and report on the system in Eire of currency, banking, credit, public borrowing and lending, and the pledging of State credit on behalf of agriculture, industry and the social services; and to consider and report what changes, if any, are necessary or desirable. The chairman of the commission was Mr. Joseph Brennan, and its members included Professor Gregory, of London; Professor Duncan, of Dublin University; Professor George O'Brien, of the National University of Ireland; Professor Busteed, of Cork; Professor Alfred Rahilly, of Cork; Lord Glenavy, representing the Bank of Ireland, and representatives of the Bank for International Settlements, the National Bank, the Catholic Church, and trade, industry and agriculture.