AUSTRALIAN FINANCE

Otago Daily Times, Issue 21308, 13 April 1931, Page 7

AUSTRALIAN FINANCE

THE BANK’S ULTIMATUM LIMIT TO TREASURY BILLS (United Press Association.) (By Electric Telegraph—Copyright.) SYDNEY, April 11. The Commonwealth Bank has sent an ultimatum to the Federal and State Governments to the effect that there must be m limit to the issue of Treasury bills, which had increased by £2,200,000 in Australia, bringing the total to £8,400,000. STATE OPERATIONS.

EXPENDITURE EXCEEDS REVENUE, . . SYDNEY, April 11. For the nine months of the present financial year the State expenditure exceeded the revenue by £7,270,883. The revenue amounted to £30,405,545, a decrease of £2,750,377 compared with the corresponding period last year. The expenditure totalled £37,676,428, a net decrease of £2,605,501. Western Australia’s shortage for the nine months amounted to £1,377,930. South Australia’s excess of expenditure over revenue was £1,959,412. COURT PROCEEDINGS. COMMONWEALTH VERSUS STATE. SYDNEY, April 11. The Sydney Morning Herald says that a writ to recover approximately £600,000 from the Government of New South Wales will be issued out of the High Court to-day on the application of the Federal Solicitor-general. The amount represents commitments to oversea bondholders which were met by the Commonwealth on behalf of the State. SYDNEY, April 12. (Received April 12, at 7.50 p.m.) The Federal Crown Law officers are working out details of the default claim against the New South Wales Government. The writ will be issued on Monday. . As certain adjustments have been made in the accounts between State and Federal departments, •it is uncertain whether the claim will be for £600,000 or £700,000. BUSINESS PRINCIPLES NECESSARY.

MR LYONS AT ADELAIDE. ADELAIDE, April 11. Addressing a gathering of business men, Mr Lyons said that he was prepared to lead a new Government in which all the forces opposed to the Scullin-Theodore policy were united for the common purpose of rehabilitation of the Commonwealth. 110 was delighted to hear that this co-ordination was going on so famously, and also that such an awakening was occurring among the people who were desirous of having a sane Government. He and his colleagues were prepared to repair the damage by applying business principles in the conduct of the nation’s affairs and by giving the utmost encouragement to private enterprise and industry. MELBOURNE, April 12. (Received April 12, at 7.so'pin.) Mr Lyons, speaking at Ballarat, said he was not afraid that the people of Australia would adopt Mr Lang’s repudiation plan, but he feared they might be tempted to subscribe to the inflation issue of the Federal Government, which was an indirect form of repudiation. Australia’s wealth was largely bound up in the primary products, and everything must be done to encourage the primary producer, who was the hardest worked and the poorest paid man in the country.

AFFAIRS IN QUEENSLAND. SHORTAGE OF MONEY. - . ; i BRISBANE, April 11. An Upper House of 20 or 30 members, elected on a non-party basis, and a reduction of the number of the members in the Assembly, were two points discussed with the Premier (Mr A. E. Moore) by a large and influential body of citizens. The deputation suggested that both issues should be put to the people by a joint referendum. The Premier stated that a referendum would cost a lot of money, and the Stats could not afford it. He thought the matter of the restoration of the Legislative Council should be decided by the Government.