SOUTH AUSTRALIAN STATE BANK

Wanganui Herald, Volume XXXXIV, Issue 12945, 9 December 1909, Page 5

SOUTH AUSTRALIAN STATE BANK

ITS METHODS CRITICISED.

Select Committee's Report.

Press Association.— Telegraph.— Copyright.

Received December 9, 8.45 a.m.

MELBOURNE, December 9.

The report of the Select Committee of the Legislative Council on the working of the btate Bank finds that the methods of working are neither in accord with the spirit, intention, or the letter of the Act, and i 3 open to the gravest censure. It rendered the Government's guarantee of the repayment of bonds a delusion and snare. The effect of the bank's action had been to practically convert the bonds from terminable securities to ' interminable annuities. The report recommends that the present and issue of bonds cease. The Government are making no further advance pending Parliamentary consideration, and the conference with the Bondholders with the' view to arriving at an amicable settlement.