AUSTRALIAN FINANCES

Poverty Bay Herald, Volume LV, Issue 17522, 21 March 1931, Page 5

AUSTRALIAN FINANCES

FEDERAL PROPOSALS N.S.W. GOVERNMENT’S DEFAULT (Received March 21. 12 noon). CANBERRA, March 21. - No information has been received regarding the New South Wales Government's arrears of interest payments, already totalling £220,876’. In the event of default, it is pointed our, the State may he sued by bondholders, and any of the parties* to the financial agreement. Replying in the House to Afr. W. All Hughes, Afr. Scullin said .Sir Robert Gibson, of the Commonwealth Bank, had expressed the opinion that it might ho necessary at some time, in order to meet obligations overseas, to ship Australian gold. Afr. Scullin added that lie thought that position was rapidly, arising. Speaking on the Fiduciary Currency Bill debate, the Prime Minister said Mr. Theodore, as a man of experience, was restored to the Treasurcrship because the situation hod become desperate. While the Government intended to reduce Public Service costs, the basic wage afid pensions would be preserved, and a central reserve bank would he established "for the maintenance of stability of the security of the monetary and credit system of the Commonwealth."