LOAN MONEY NEEDED

Poverty Bay Herald, Volume LV, Issue 17179, 8 February 1930, Page 5

LOAN MONEY NEEDED

N.S.W MAY DISMISS MEN GOLD TO BE SHIPPED TO LONDON SYDNEY, Feb. 7. The State Treasurer announced today that if the Government is unable to obtain loan money immediately at least 1000 men on railway construction and on development works in the city ,aud country will have to be dismissed at the end of next week. Sir Robert Gibsoir, chairman of the Commonwealth Bank, has announced that the bank is shipping £7,000,000 in gold to London immediately to build up reserves to meet overseas obligations. These amount, together with £10,000,000 of gold shipped overseas since last July, to £17,000,000. He pointed out that the shipments have in no way impaired the gold reserves held against the note issue, which to-day stood at 43 per cent. The bank board was carefully watching the position and, if the national needs demanded further shipments, gold could be provided, still leaving the gold reserve against the note issue unimpaired. The whole movement was directed to meet accrued or accruing obligations. Sir Robert Gibson emphasised the fact that Australia was sound and would overcome her present difficulties. Australia’s abnormal prosperity had led to extravagance, but those responsible for the country’s stability were co-operating in this direction and ho had every confidence that the position would right itself. Tho great disparity on the London stock market between Australian securities and those l of other Dominions was not justified, and those who had the courage to purchase Australian securities at tho market values of to-day probably would have reason to congratulate themseives later. In the meantime it was necessary that imports should lie kept, down to a minimum until the position was completely adjusted.