AUSTRALIAN FINANCE

Taranaki Daily News, 13 January 1932, Page 12

AUSTRALIAN FINANCE

RETURNING CONFIDENCE. ' RELEASE OF BANK DEPOSITS. The financial position of Australia is expected to experience considerable relief this week when the Commonwealth Bank intends to release the balance of the deposits which have been locked up since the New South Wales Government Savings Bank closed, its doors in April of last year. Commenting on the position, Major J. B. Shand, Nationalist member of the Legislative Assembly of New South Wales for tfie Hornsby division, who arrived at Auckland on Monday, said that when it was realised that £56,900,000 in deposits had. been locked up for nearly a year it would be readily appreciated that the release of such financial resources must furnish an avenue for considerable expenditure. “It ■should,” he said, “put new heart into the people to embark with confidence in new investments.”

In December the Commonwealth Bank, which has now definitely absorbed the Government Savings Bank, allowed depositors to withdraw 10 per cent, of their holdings. The entire balance, said Major Shand, would be released on Thursday, thus bringing to a close one of the most astonishing phases of Australia financial history. •If it were not for the powerful entrenchment of the Lang Government in New South Wales the people of Australia could regard the present state, of the country with the utmost satisfaction. As an instance of the ineptitude of that Government Alajor Shand stated, that, whereas the . Bavin Government, with an unemployment tax of 3d in the pound, had planned an expenditure of £2,100,000 on relief works, the Lang Government, with a tax of Is in the pound, was making provision for an expenditure on relief works- of only £1,100,000. The balance of the money raised was employed as a form of dole. “But there is a brighter outlook for this year,” added Major Shand. “The Federal elections have demonstrated the spirit of the people and a much more buoyant feeling has been created as a result of improved prices for the staple products, such as wool and wheat.” Wool had improved about 5 per cent, on the December rates. Moreover, the exchange on London was considerably aiding the Australian producers. The only disappointment was in connection with frozen lamb. Prices, indeed, had slumped so badly that one large exporting company in Melbourne had been obliged to close down. Major Shand is visiting the Dominion to investigate the possibility of improving the market for Australian citrus fruits. His constituency comprises the Hills district of Windsor, which supplies Sydney with the bulk of its fruit and the surplus is exported. Speaking of the Alurrumbridgee irrigation scheme, he said that the Government of New South Wales had spent no less than £13,<X)0,000 on the plan! The area was wonderfully fertile, but there had been severe setbacks, from which the district was steadily recovering, and considerable help was expected from the Government in the way of remitting portions of the heavy cost of the land.