AUSTRALIAN CRISIS

Southland Times, Issue 21273, 19 December 1930, Page 5

AUSTRALIAN CRISIS

WARNING BY BANKS

BALANCING OF BUDGETS ESSENTIAL

ADVANCES MAY BE CURTAILED

(United Press Assn.—By Telegraph—Copyright.) (Rec. 1.15 a.m.) Sydney, December 18. A solemn warning by the banks of Australia to the various Governments to balance their budgets and reduce costs is issued by the Bank of New South Wales on behalf of all the other banks. Their statement proceeds:—

“Unless effective steps are taken immediately the time is coming when the banks and other financial institutions will be unable to assist the Governments to meet salaries, wages and other commitments except at the expense of widening the gap already in evidence between costs of and the returns from Australian industries. Had the policy adopted at the Premiers’ Conference in Melbourne last August been carried fully into effect, drift could have been checked. Unfortunately that policy is not being fully observed, and the banks are faced with heavy demands to enable the Governments to meet their daily obligations. A continuance of such demands will force upon the banks a drastic curtailment of advances to customers. The banks are unable to accept responsibility for the consequences which must inevitably follow, but it' is most desirable that the public should be warned of the facts.

‘‘The banks have made efforts unparalleled in the history of the country to help all classes, and extra assistance in the last three years has reached £70,000,000 in accommodation granted all round. It is essential, therefore, that industry and trade be placed on a basis that will show a margin for a living for the producer and for the maintenance of solvency in public and private finances in Australia.”