INVESTMENT CONTROL

Wanganui Chronicle, Volume 83, Issue 243, 14 October 1939, Page 3

INVESTMENT CONTROL

COMMONWEALTH Pl AN’S 5. es CONSERVATION OF FUNDS sc cs fa. Plans arc being prepared by Ihe fa. Commonwealth Government for the close official control of all forms of I.- private investment to conserve investment funds accumulated in Australia for war and other essential national purposes. Tfiis decision follows a review, which has disclosed that x ’ war costs will have to be financed v largely from loans, most of which it ruS is intended should be procured in Australia. The plan to control private investment is not yet complete in ail its p details, but it is believed that the , Ministry will appoint an expert board to supervise it, states the Argus. Mel--23 bourne. This board is likely Io be representative of the Federal Treasury or the Commonwealth Bank or 3 - both, and the Stock Exchanges and ’ business interests. Regulations to provide for control 50 will probably be proclaimed soon under the National Security Act. The main duty of the board would ? be to ensure that no project involvU ing heavy drains on the investment market would be sanctioned if not for a nationally urgent industry or enterprise, or if it would conflict in any way with the free subscription of defence loans or of funds for the exL pansion of vital undertakings. Power will be taken by the executive to prohibit the flotation of any 5o company, or issue, not deemed to be 19 essential and likely to prejudice pub--29 lie operations. 32 The degree of control over private j 5 investment, officials explained, would £2 probably vary with the amount of in--56 vestment money available in Austra--22 lia. It is hoped that in addition to 73 conserving funds the control organisa--47 tion would assist in preventing excese - sive increases in the interest rate on new public loans.