Price Fixed for Purchase of Shares By Commonwealth Bank

Otago Daily Times, Issue 26545, 21 August 1947, Page 7

Price Fixed for Purchase of Shares By Commonwealth Bank

CANBERRA, Aug. 20. Mr Chifley has moved to check the falls in the market price of banking shares, which he describes as “ entirely unwarranted." “The Government desires to make it clear that it does not advise shareholders to sell,” he announced. “ but in order to protect the interests of those shareholders who, nevertheless, wish to sell, the Government has arranged with the Commonwealth > Bank to purchase any bank shares which holders are desirous of selling. The purchase price will not be less than that quoted' on the Stock Exchange on August 15.” The day fixed was the day before the announcement of nationalisation. The announcement will have the effect of checking the downward trend, noticeable particularly yesterday, but will mean that people who bought bank shares as a speculation on a falling market will make money. There has been no panic selling, and. the number of shares which changed hands on Monday and yesterday is small.* Officials of trading banks warned shareholders from the beginning not to part with their shares precipitately. In Melbourne the Opposition leader, Mr R G>Menzies, added his voice to the demand that the issue should be put to the people. “Under the Government plan there will now be ■ no choice of banks,” he said. "Small traders desiring help in financial affairs and accustomed to regard the bank manager as a friend and a confidant will find that the only official to be interviewed will be an official of the Commonwealth carrying out highly political orders which will come from the Treasurer, who in turn will take his direction from the Labipur caucus. The small trader can expect cold and impersonal treatment.”