GOLD TO BE SENT TO LONDON

Stratford Evening Post, Volume I, Issue 90, 25 March 1931, Page 5

GOLD TO BE SENT TO LONDON

COMMONWEATH BANK’S FUNDS

LEGALISING MEASURE INTRODUCED

THEODORE EXPLAINS POSITION

Reed. 9.30 a.m. CANBERRA, Ibis Day. THE Government’s new financial proposals, were detailed by Mr. Theodore, in moving the second r eading of the Commonwealth Bank Amendment Bill, authorising the Government to use the present gold reserve to meet urgent outstanding liabilities, and fixing the minimum issue Australian notes at £60,000,000. /

The explanation for the measure was that Sir H. Gibson, chairman of the Bank Board, had indicated that they were approaching a position where shipments of gold to meet London indebtedness would intrude on the amount the bank was legally required to keep in its vaults. “It is far better to make use of this gold in London than have it in the vaults, where it is performing no discernibly useful purpose*,” declared the Treasurer. Unless the gold Is shipped, Australia must default on "obligations falling due, as it could not raise loans in London or get credits there to carry; on.

Since January, 1930, £28,470,000 worth of gold had been shipped, Find the Commonwealth Bank now Held £ 15,385,00(77 The debate will begin when the House meets after. Easter. It is stated at Canberra that the Opposition are perfecting plans for an early election. The Rt. Hon. Stanley Bruce will contest his old seat of Flinders as a Nationalist. -