AUSTRALIAN FINANCES

Wanganui Chronicle, Volume 73, Issue 413, 3 November 1930, Page 7

AUSTRALIAN FINANCES

TAXATION PROPOSALS. INCREASE ON INCOMES. VANBERRA, Oct. 31. In addition to the new taxation proposals already announced, tho Federal caucus agreed to a o per cent, increase in taxation on incomes from personal exertion exceeding £5OO, which is expected to yield £175,000. TRANSFER CHARGES A HEAVY INCREASE SYDNEY, Nov. 1. From to-day transfer money from Sydney to New Zealand will cost £4 7s 6d per £lOO. So now, to place £lOO in New 7 Zealand requires the payment of £lO4 7s 6d in Sydney. This is an ad dition of £2 10s to the previous rate. For ordinary trade transactions the cost remains unaltered at 5s per cent. The alteration has been made W’ith the object of preventing Australians transferring money to New Zealand for the purpose of buying London exchange in New Zealand to the disadvantage of New Zealand importers, also to check the sending of funds from Australia to New Zealand for investment.

The object of the alteration in the rates is .u check, if not to prohibit, attempts made in Australia to take advantage of the New Zealand rates on London, which are more favourable than those for Australia on London, and at the same time discourage the sending of moneys from Australia for investment in New Zealand.

The chairman of the Associated Banks of New Zealand desires to reiterate that proceeds from New Zealand produce bills are definitely earmarked for the payment of imports by New Zealand. In other words, although tho banks operating in Australia have agreed to pool proceeds from their produce bills to the amount of £36,000,000 upon which the Commonwealth Government has first call, all the banks operating in New Zealand keep separate and apart from this pool the proceeds of New Zealand produce bills exclusively for New Zealand use. Some idea of the high price which Australia is prepared to pay for money in London can be gathered from the fact that as high as £l2 per cent, has recently been paid in open market in Melbourne for cover in London. The banks in Australia are strictly rationing their customers, but are meeting their needs for London cover as far as they arc able to do so. LORD STONEHAVEN’S VIEW THE WAY TO PROSPERITY HONOLULU, Oct. 31. Lord Stonhavcn said that Australia’s business depression could be relieved through a world-wide financial readjustment w’ithout the aid of an international economic policy. “I cannot hope for much progress until the nations with whom we trade reach better economic conditions.”