AUSTRALIA’S WEAK FINANCE.

Timaru Herald, Volume CXXXIII, Issue 18764, 31 December 1930, Page 9

AUSTRALIA’S WEAK FINANCE.

Renewal Of Treasury Bills. SIGNIFICANCE OF HIGHER DISCOUNT RATE. United Press Association —By Electric Telegraph—Copyright SYDNEY, December 30. The discounting of Australian Treasury bills of £5,000,000 at 5 per cent, suggested by the “Morning Post” yesterday is for the repayment of a similar amount discounted in July at 4 per cent This amount of £5,000,000 is portion of £38,000,000 of Australian floating debt in London. The bills are issued at a discount of 5 per cent., and are repayable on June 30. The “Sydney Morning Herald” points out that the increase in the discount for the latest issue, namely to 5 per cent., unfortunately does not reflect an improvement in Australian credit. This rate contrasts with £3/0/2 per cent, as affecting a similar amount of bills at the end of last August. The bills which the issue now suggested will replace, ■were discounted in July at 4 per cent., making an effective rate of £4/1/7 per cent. DRASTIC MEASURES PROPOSED. DANGER OF FINANCIAL DRIFT. United Press Association—By Electric Telegraph— -Copyright (Received December 30, 7.30 p.m.) SYDNEY, December 30. The Advisory Council recently appointed at a representative meeting of primary, commercial and business interests, has propounded a policy, which it considers should be put into immediate effect in order to stave off the dangerous financial drift. Its chief recommendations comprise the suspension of awards, revision of the tariff, removal of restrictions on the rate of exchange, to enable primary producers to acquire the full benefit of their products, and finally a drastic revision of Government expenditure. The Advisory Council is arranging meetings throughout the country, to give producers an opportunity of making a united demand along these lines. Bankruptcies In N.S.W. The number of bankruptcies in New South Wales for the last five months, doubles those in the corresponding months in 1929. The total discrepancy in assets, compared with liabilities is £109,476.