TO LIMIT INTEREST

Stratford Evening Post, Volume I, Issue 81, 14 March 1931, Page 5

TO LIMIT INTEREST

LANG'S NEW PLAN i RESTRICTION ON RATES SAVINGS BANK EXEMPTED FINANCIAL WRITERS CONCERNED Press Association. —Copyright. (Reed. 5.40 a.m.) SYDNEY, This Day. Although the State Ministry's plan for limiting interest on Government and private borrowings has not been finalised, it is understood Mr/ Lang has submitted the following scheme to tlie Labour caucus: The rate of interest on Government, borrowings to be 3 per cent., the rate on private borrowings not to exceed 5 per cent., the rate on second and subsequent mortgages not to exceed 6 per cent. Interest rates on deposits in the banks and other institutions are to range from 1J to 3 per cent., but the State Savings Bank is to be exempted. The Premier and some of his colleagues are of opinion that this plan will provide plenty of cheap money for industrial enterprises whereby the unemployed will be absorbed in large numbers. The interest on loans overseas is to be subject of future negotiations with those concerned.

Financial writers declare the Lang scheme will drive capital to other States, where no such restrictions prevail, and thereby deal a severe blow to New South Wales industry. The Arbitration Bill was "gagged" through committee in the final stages.