NEW SOUTH WALES

Wairarapa Daily Times, 14 March 1932, Page 5

NEW SOUTH WALES

FINANCIAL POSITION

WITHDRAWALS FROM BANKS. Press Asset iiiuLa Electric Telegraph—Copyright SYDNEY, Sunday. Mr Jarvic, tlie Nationalist member of the State Assembly, made a statement to-day that just before the banks closed yesterday two State Government cheques were presented and cashed in notes, one for £750,000 with the Dank of New South Wales, and the other for £400,000 with the Commercial Dank, Sydney. The bank authorities admit that £750,000 was withdrawn by the State Government from the Bank of New South Wales and £250,000 from the Commercial Bank, though Mr Jarvie maintains that ho was informed that the latter sum was £400,000. INFLUENCE IN STATES. NEW YORK, Saturday. Ivar Kreugcr exerted great influence in the financial world here. He began liis career in America as an obscure engineer, and built an athletic stadium for the Syracuse University, which in 1930 gave him the honorary degree of Doctor of Business Administration. During a recent visit to America he had an interview with President Hoover, and was engaged in consultation with New York Stock Market experts, as a result of which Mr Kreugcr was told that certificates had been subjected to pressure and rose from 4f dollars on sth January to 9 1-S dollars three weeks later, and were well supported above 7 dollars prior to the week just ended. Although the news of his death was published after the close of the market to-day, selling certificates began at the opening of the Stock Exchange, and had all the indications of being of the “informed” type, which usually precedes unfavourable news. A total of 105,000 certificates were sold, a quarter of the volume on the Exchange, but they were apparently well supported. PRESS COMMENT. (Received Monday, 10 a.m.) SYDNEY, This Day. The “Telegraph” says: “It is suggested that the State Government withdraw money from the banks to forestall the garnishee bill passed by the Senate on Friday. If this is the case the object of the move no doubt is to embarass the Federal Government, by attempting to put money beyond its reach. If anything of the kind has happened, in the long run of course the taxpayers will have to pay the cost of a fight between tbc Commonwealth and State Governments.” The “Telegraph” adds: “A trifle of £1,150,000 will not go far in running New South Wales. It costs the State Government about £50,000,000 a year to carry on, including £8,000,000 for interest payments.”

DELUDING HIMSELF. (Received Monday, 11.5 a.m.) SYDNEY, This Day. The money withdrawn from the two banks has been deposited in the New South Wales Treasury, and the ordinary treasury police guard has been strengthened. The Federal Prime Minister, M r Lyons, commenting on the action, said that it would not in any way prevent the carrying out of the Federal law to compel the State to meet its obligations. Mr Lang is deluding himself n he thinks that his action is a means of yading the effective weapon that has been forged by the Commonwealth Government to compel him to meet his undertaking. Mr Lyons added that it would seem that Mr Lang had sufficient money rn the banks after all with which he could have paid tlm interest had he desired to do SO’. Speaking, at Wollongong, Mr Lyons declared that the Government efforts to restore industry, and, consequently, remove unemployment, had been hampered bv the Lang Ministry, and the onlv absolute remedy he saw was an early New South Wales election. The Federal Prime Minister said that the Government would have to considci tlm use of the credit of the country to enable it to carrv out reproduction work*, for Tt would lie 'Ti’Oi'ir to go l>»rl <“ t old poliev of Viorrowlnpr money to 'Oiiovo unemployment nod vc-1.n1..1.tnto Australia.

\ cnlde last week stated: The Seu,te. l,avin<r passed the Financial Agreements Enforcement Bilk the Govern ment is expected to institute action against New South Wales next week bv asking the Federal Parliament to pass resolutions wherebv the State revenues become immediately attachable to satisfy the debt for the defaulted mteiest payment).