POSITION IN AUSTRALIA.

Otago Witness, Issue 4042, 1 September 1931, Page 44

POSITION IN AUSTRALIA.

THE CONVERSION LOAN A WONDERFUL SUCCESS. SYDNEY, August 26. The National Appeal Executive announces that the conversion loan has now advanced to a stage which ensures wonderful success. The total conversions are now £312,000,000. PRIMARY PRODUCERS’ BANK. LIMITED ACTIVITIES. SYDNEY, August 25. Compared with other trading banks the activities of the Primary Producers’ Bank, which failed yesterday, were not considerable. It had a staff of about 150 and concentrated mainly on financing pastoralists and agriculturists, the bulk of its business being done in the eastern States of Australia. Nevertheless, the fact that it collapsed caused a stir in the different cities. REOPENING PROBABLE. MELBOURNE, August 27. The chairman of directors of the Prim--ary Producers’ Bank (Mr Schweiger) stated that several proposals had been made with a view to assisting the directors to carry on the bank, and possibly a way would be found to open the bank again. COMMONWEALTH BANK. ATTEMPT TO MAGNIFY RUN. SYDNEY, August 25. Mr T. R. Bavin, r.peaking in the Assembly on the Government Savings Bank Bill, declared that there was an organised attempt some months ago to magnify the run on the Commonwealth Bank following the closing of the State Savings Bank. He had definite knowledge that at least 100 men joined the queue on the fateful Saturday morning, passed through the bank, and out the opposite door, afterwards joining up with the queue again and. repeating the performance several times. Mr Bavin described it as a dastardly attempt to shake confidence and intensify the fears of another bank crash, this being part of a sinister plan to smash financial institutions. The Premier (Mr J. T. Lang) announced that the following would constitute the board of trustees of the reconstructed New South Wales Government Savings Bank:—Sir William Vicars, Sir Joseph Clifton Love, Sir John Butters, Mr W. H. O’Malley Wood and Mr Mark Y’oung.

CLOSED SAVINGS BANK COMPROMISE ON AMENDMENTS. SYDNEY, August 28. All stages of the Government Savings Bank Bill have now been completed, the Assembly and the Council having reached a compromise on the amendments made to the measure. August 29. The Governor has assented to che Savings Bank Bill, which takes effect on Monday. The new commissioners meet that day to decide the opening date and to elect a chairman. WESTERN AUSTRALIAN BANK. MERGER ALMOST COMPLETED. PERTH, August 26. The proposed merging of the Western Australian Government Savings Bank into the Commonwealth Bank has almost been completed. The authorities emphasise that the merger is not due to the bank experiencing any difficulties with the State, and the Government, is merely proceeding with the present scheme as part of its economy policy. The latest balance sheet of the State Savings Bank shows that the deposits are £8,500,000. The profits in 1930 were £16,500. DEPOSITORS REASSURED. MELBOURNE, August 27. Sir Robert Gibson, chairman of the Commonwealth Bank Board, to-night issued a statement reassuring depositors in the Western Australia Government Savings Bank and urging them to have no fear that their savings were in jeopardy as the Commonwealth Bank was standing behind that bank until the Western Australian Government passed the legislation which was necessary for the amalgamation. Thus the local depositors would be paid in full whatever happened. He urged them to pay no attention to mischievous rumours and cease withdrawing their savings, which had recently caused the gravest apprehension.

Sir Robert also explained for the benefit of depositors throughout Australia that the banking position had been greatly strengthened in recent years. The Commonwealth Bank was holding large deposits of the trading banks, which looked upon the Commonwealth Bank as a sort of central reserve bank which could issue currency in the form of national notes in any emergency. Loss of confidence in the banking system would, he added, spell disaster, and he expressed the hope that the people would remain calm.

MR LANG’S BUDGET. 5 DEFICIT OF EIGHT MILLIONS. SYDNEY, August 28. The Premier and Treasurer (Mr J. T. Lang), in delivering the State Budget, estimated the deficit on the current year’s financial operations to be £8,305,596. This included a sum of £1,672,722 representing unpaid overseas interest, “ which the Government has temporarily suspended.” He announced that reductions in the adjustable expenditure for 1931-32 would yield £8,285,000 comprising 20 per cent, economies in conformity with the Premiers' Conference in August. The only new taxation mentioned by Mr Lang was an increase in the family endowment tax by 1 per cent., making it two per cent., as there is an overdraft in this fund of £1,443,741. The collections for unemployment relief for the 12 months totalled £4,377,835. Mr T. R. Bavin, Leader of the Opposition, complimented the Premier on facing the realities of the situation and abandoning his attitude of isolation. The only thing that remained for Mr Lang to do was to tell the country whether he had abandoned “ the Lang Plan,” otherwise all his good intentions so far as the future was concerned would be mere humbug. The Budget did not include the Government’s obligations to depositors in the ill-fated Savings Bank. The debate was adjourned. FEDERAL LABOUR PARTY. SUPPORT FOR PREMIERS’ PLAN. MELBOURNE, August 29. A conference of the Federal Labour Party defeated a South Australian proposal that members of Parliament who supported the Premiers’ plan be expelled from the movement. Mr Scullin and Mr Theodore voted against the proposal.