OFFER OF LOAN

Taranaki Daily News, 20 June 1931, Page 7

OFFER OF LOAN

LONDON LENDERS’ MOVE £15,000,000 FOR AUSTRALIA SCULLIN NOT ENTHUSIASTIC LABOUR BACKS PREMIERS SAVINGS BANK MAY RE-OPEN By Telegraph—Press Assn.—Copyright. Rec. 8.50 p.m. Sydney, June 19. A group of financiers in Loudon through a Sydney agency is reported to have offered £15,000,000 in gold foi a long term at market interest to the Commonwealth Government, the bullion to be paid for by bonds with a currency of 40 years at 4 per cent. The Prime Minister, Mr. J. 11. Seullin, declines to comment but displays no enthusiasm about the offer. Some of his colleagues express the opinion that the lenders must be very well disposed to Australia having regard to the financial plight here and more profitable field elsewhere.

Negotiations are proceeding at Canberra for re-opening the New South Wales Government Savings Bank. A strong desire has recently been evidenced that the proposed merger with the Commonwealth Bank should not be completed. It is understood the latter bank is not anxious to absorb the State bank owing to its vast ramifications. Official circles in New South Wales are extremely optimistic that the Government savings banks will soon be reopened. The Federal executive of the Australian Labour Party, which has held a series of meetings, concluded its delibon the Premiers’ conference plan and resolved to approve the action of the Prime Minister and Mr. E. G. Theodore in giving Parliamentary effect to the scheme. At the same time the executive expressed the strongest objection to the principle of reduc’frig wages, pensions and social services. The executive pointed out that as the Government’s monetary policy had been thwarted by the banks and a reactionary Senate the only alternative to the present plan was a Nationalist Government, which would give the workers an infinitely worse deal. It was therefore of the greatest importance that the Labour Government should remain in office as an election at the present moment would be dangerous to the workers’ interests. GOLD SHIPMENT MEASURE. THE FULFILMENT OF A VOW.

Rec. 7.40 p.m. London, June 19. The Financial News says that the rapidity with which the gold shipment measure was passed demonstrates that Australia can move swiftly when the occasion demands. It is clear evidence of the fulfilment of the vow of politicians to pull together. The gold shipment disposes of Australia’s most urgent problem.