AUSTRALIAN FINANCE

Otago Daily Times, Issue 21529, 29 December 1931, Page 7

AUSTRALIAN FINANCE

BILLS MATURING IN LONDON PROBABLE RATE OF RENEWAL (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, December 27. In view of the Commonwealth’s inability to discharge £5,000,000 of bills maturing on December 31 with the Westminster Bank, the interesting point of the moment is the rate at which renewal may be expected. The 123 s3d rate <at which New Zealand bills were placed has been mentioned, but the general opinion is that the market finances of the two, dominions cannot be judged on the same basis. In the case of Australia the expectation has been that 1 per cent, above the bank rate would be asked, bu{t the Australian Press Association understands that the marked swing of the political pendulum in the Commonwealth is likely to tell in its favour, and a' renewal at per cent, is not too much to hope for. STATE VERGING OF[ BANKRUPTCY. v SYDNEY, December 28. The Telegraph says that one of the first things the new Federal Government is likely to consider is the financial position of New South Wales, which would raise the possibility of this State being practically declared bankrupt.-The Loan Council will possibly consider Mr Lang’s application for approval of a bond issue to cover the .cost of the Eastern Suburbs Railway only on condition that Mr Lang makes good the defaulted interest and - fully honours his promises to the council. V Unless steps are taken'to place New South Wales in a solvent condition the necessity for installing a receiver will become urgent. \