SUFFICIENT CASH RAISED

Taranaki Daily News, 24 July 1931, Page 7

SUFFICIENT CASH RAISED

N.S.W. WAGES WILL BE PAID CONVERSION BILL PASSED SAVINGS BANK ABSORPTION MR. J. T. LANG’S TIME LIMIT By Telegraph—Press Assn. —Copyright. Sydney, July 23.

According to a semi-official statement, the State Treasury has sufficient funds to pay all public- servants’ salaries in full to-day. 1

The Legislative Assembly passed through all its stages the Debt Conversion Agreement Bill, the first of the economy measures designed to give effect to the decisions of the Premiers’ Conference.

Mr. Lang announced in the Assembly that he was unable to table the terms of the agreement with the Commonwealth Bank regarding the absorption of the State Savings Bank, as he had received notice from the chairman of the Commonwealth Bank stating that if he did so further negotiations would be automatically closed. Mr. Lang has been given until Saturday to accept or reject the Commonwealth Bank’s proposals for taking over the Savings Batik. >.

REOPENING NEGOTIATIONS.

STRICT TERMS IMPOSED.

Sydney, July 18. There is believed to be a reasonable probability that the Government Savings Bank of New South Wales may be reopened for the transaction of ordinary business on September 1 next. It had been hoped that a resumption could be made on August 1 next, but, owing to the prolonged preliminary negotiations for the transfer of the business to the Commonwealth Bank, that is regarded now as well-nigh impossible. The plan for the amalgamation of the bank with the Commonwealth institution is understood to involve a “rationing 5 scheme. This will probably mean that, at the outset, depositors will be limited to withdrawals not exceeding 10 per cent, of their total credits. Should that basis be adopted, .it is thought likely that after a brief period the withdrawals limit may be either removed altogether or applied in modified form for a further term. That, however, will be determined mainly by the degree to which depositors exercise their rights under the rationing plan. Should subsequent developments prove such as to tend to the stabilisation of the bank, under the control of the Commonwealth Bank authority, as proposed, business, would be allowed to revert to a normal basis. It is believed that the scheme for amalgamation includes provision for liquefying a. proportion of the assets of the State bank. which at present are classed as temporarily “frozen. It is recognised that the Castlereagh Street headquarters building, which was estimated to have cost not much less- than £2,000,000 constitutes a problem. After a time, it is thought,.the palatial premises might become a redundant asset, so far as its usefulness to the bank, after amalgamation, is concerned. . t Realisation of such a property in existing real estate market conditions, is viewed as most undesirable, but with its Pitt Street extension well on the way the Commonwealth Bank is not likely to .be under any pressing necessity to restrain wholly the Castlereagh Street block for purposes of the business of the Government Savings Bank. The terms, providing as they, do for only partial withdrawals by depositors, and excluding the Rural Bank, are such that the Premier (Mr. Lang) will probably refer the whole matter to Parliament before announcing the Government’s willingness to accept the agreement.