STATE NOTE ISSUE.

Dominion, Volume 3, Issue 845, 17 June 1910, Page 5

STATE NOTE ISSUE.

COMMONWEALTH SCHEME, By Telegraph—Press Association-Oopyright. (Roc. Juno 17, 0.30 a.m.) Melbourne, Jimo 16. Mr. Fisher, Prime Minister and Treasurer of the Commonwealth, is determined to carry out his State note issue proposals, and is consulting bankers on the subject. MR. FISHER ON HIS POLICY. The Federal Treasurer, Mv. Fisher, referring to the question of finance recently, said: "I think it is likely that a Commonwealth note issue will be proposed on the lines that havo proved practical, safe, -and beneficial in a State of the I Commonwealth." I Mr. Fisher explained that he referred to the Queensland note , issue, against which a reserve'of 25 per cent, is held. He considered that the Commonwealth should have the currency of the country in its own hands, not only the metal currency, but any paper issue as well. He would not indicate what the amount of tho issue was likely to reach. But, on the question of profits, he said that with .£•4,000,000 worth ot notes in circulation, and a reserve of ,£1,000,000 held against them, tho gain to tho Commonwealth would be about .£IOO,OOO per. annum. Mr. Fisher added that he had again been submitted to unfair criticism by financial journals, who quoted him as saying that a conversion of State debts to a I uniform Commonwealth stock would reI suit in a saving of from a quarter to ; half per cent, in the interest rate. He had never said, on any occasion, that it would result in a saving of one-half per cent. He had always said that thwo were reasonable grounds for believing that the conversion, as loans matured, would probably find the Commonwealth in credit a quarter per cent, better than the State average. If the Commonwealth borrowed money to-morrow he would not expect that result. But, as time went on, and Commonwealth stocks accumulated, he would expect the saving indicated to bo effected.