AUSTRALIAN FINANCE.

Waikato Times, Volume 106, Issue 17877, 25 November 1929, Page 5

AUSTRALIAN FINANCE.

BANKING PROPOBALB. NOTES AND CASH RESERVE. REMOVAL OF RESTRICTIONS. United Press Assn.—Elec. Tel. —Copyright CANBERRA, Nov. 24. The Labour Ministry’s new banking proposals involve the removal of the present restrictions on the proportion of notes lo cash reserve anil thc transfer of the power to fix exchange rales with London from the Associated Banks to the Commonwealth Bank. Mr F. Anstey, Minister of Health, forestalled Mr E. G. Theodore, who is tho Treasurer, with an explanation of the Government’s Intentions. Mr Anstey declared that the bank- 7 Jng institutions must cease to be the masters, and must become the servants of industry. He staled that exchange rates at present are not fixed in accordance with movements of money and credit between Australia and London, hut largely on tho result of secret understandings among the private banks.

“ In these periods of depression it is essential," he added, “ that advances should be made on good security. The Labour Party will enable the Commonwealth Bank to have the opportunity to provide a great sendee to the nation, and the private banks must follow suit or perish. Thus Industry will be promoted, employment follows and prosperity is the outcome." America’s prosperity, Mr Anstey claimed, is largely based on the progressive policy of her financial institutions.

TAXATION PROPOSALS. ADVERSE CRITICfSM. i United Press Assn.—Elec. Tel.—Copyright LONDON, Nov. 24. The Financial News states that the Australian Government’s proposed supertax on incomes will accentuate the complaint of double taxation from those liable both hero and in Australia. The effects of the increased customs duties may be considerably more serious. Manufacturers here will necessarily be injured while from Australia’s standpoint the tariff changes will perpetuate the policy which has already been condemned as contributing to that failure of the national income to expand, which is the root of her financial difficulties.

The newspaper adds it awaits details of the hanking proposals and says the disturbing clement lies in the source from widen they proceed and concludes: “Mr Theodore has admitted that Australia's credit is somewhat impaired and his statement bus not given grounds for thinking he is on the right road to restore it.”