MR LANG TO RESTRICT RATES OF INTEREST.

Star (Christchurch), Volume XLIV, Issue 62, 14 March 1931, Page 1

MR LANG TO RESTRICT RATES OF INTEREST.

PLENTY CHEAP MONEY IS AIM'OF N.S:W. PREMIER.

(United Press Assn.—By Electric Telegraph—Copyright.). (Received March 14, 8.40 a.m.) SYDNEY, March 14. Although, the State Ministry’s plan for limiting interest on Government and private borrowings -has not been finalised, it is understood that Mr Lang has submitted, the' following schejne to the Labour Caucus: (1) The rate of interest on Government borrowings to be 3 per’ cent. (2) Interest on private borrowings not .to exceed 5 per cent. (3) Interest on second and subsequent mortgages not to exceed 6 per cent. (4) Interest rates on deposits in banks and other institutions to range from-H-to 3 per, cent, but. the State Savings Bank to be’ exempted/ * ' The . Premier and some ! of his col-' leagues • are of . the .opinion that this plan will provide plenty of cheap money for industrial ’ enterprises, whereby the unemployed will be absorbed in large numbers. Interest on loans overseas is

to be subject to future negotiations with those concerned. -Financial writers declare that Mr Lang’s scheme will drive capital to other States, where no such restrictions prevail and thereby deal a severe blow at New South-Wales industry.