THE COMMONWEALTH

Otago Daily Times, Issue 21977, 12 June 1933, Page 7

THE COMMONWEALTH

THE STATES* FINANCES DEFICIT OF NINE MILLIONS (United Press Association.) (By Electric Telegraph—Copyright.) MELBOURNE, June 10. The Loan Council having communicated with the Commonwealth Bank Board asking for accommodation in the next financial year to cover the States’ £9,000,000 deficits, the board is understood to have replied that it is unable to accede to the terms. The reply will be disclosed to-day. SYDNEY, June 10. The Telegraph’s Melbourne correspondent says that a dramatic turn was given to the financial accommodation proceedings when the State Premiers mot independently of the Commonwealth representatives to discuss the Federal Government’s attitude at the Premiers’ Conference. Concerted action was decided on to obtain what the States consider their just rights in the present negotiations. The State representatives are critical of the Commonwealth Government’s attitude concerning the surplus, the budgetary deficits, and its proposals for a constitutional convention. ASSISTANCE FROM THE BOARD. MELBOURNE, June 11. (Received June 11, at 7.30 p.m.) The Commonwealth Bank Board has agreed to finance the States’ deficits for 1933-34 to the extent of £8,500,000. Sir Walter Massy Greene, chairman of the Loan Council, announced that the Bank Board desires to defer the request for. financial accommodation pending the outcome of future conversions whereby it is hoped considerable relief will be afforded. It is now regarded as likely that the States’ deficits, which were originally anticipated to be nine millions, will not exceed seven' millions. The bank has undertaken to discount Treasury bills to finance these deficits and a substantial sum is likely to be available for a continuance of public works. MELBOURNE, June 11. (Received June 11, at 11.56 p.m.)

The Commonwealth Bank Board announces its intention to make, a special grant of £300,000 to the smaller States, apart from their share in the finance provided by the bank.