A STATE TRADING BANK

Dominion, Volume 11, Issue 189, 30 April 1918, Page 6

A STATE TRADING BANK

NEW SOUTH WALES MAY ADOPT SCHEliii. - The establishment cf a State trading bank may skortiy be considered by the New South W'aks Cabinet (states the "Sun"). Jt is not thought probable that the proposul will be for an entirely new institution; a muck more easy operation would be to extend the functions of the Savings Bank and enable it lo undertake trailing operations. A few years ago the person who suggested tho raising of a local loan in Australia ot <£40,000,000, or even of .£10,000,000, would have been ridiculed. Hut the exigencies created by the war navo forced a realisation upon the community oi its , own richness. . New South Wales is now spending loan money at the rate of .£5,000,000 annually. Three years ago it 'spent well o\er JE8.000.000 in the ytar. A treat army ot employees, over 14,000, are directly dopendent upon the continuance ot a normal How of loan money. \ ital works are dependent on it. Last year the Nnv South Wales Government was allowed to go on to tho London loan market only on condition that it confincd itself to £3,000,000 of fresh money during the year, this year it inav not be allowed to raise any money at all. It has, it had last year, ,£11,000,000 duo under the .';ew Norton OriUiths arrangement. Tho Government believes it would be disastrous if no mure loan money than the J2,000,G00 were obtained, .-part from the men thrown oui uf employment, Industrie generally, it is argued, would be reacted upon. . The oniv alternative to a .oan from London is'a local loan. The only way to make a local loan a success is believed to be in having a bank, with ho State's backing operating on lb, Jjohalt. It is generally cveclitod in pU.t.c.i! circles that the Government has aUwly decided generally, if not in minor details, upon a land bant scheme, and the converted savings bank might have ohareo of it, making its operations of a triple nature-trading, savings, and lawl. The idea of the land bank is tlint it shall advance to settlers pound for pound for the improvements they make. If 3 settlor has .1:100 capital, and has to make .£SOO worth of improvements, he can obtain from tiir lnnk as soon as I, - has expended the .8100 a l«»n of the full amount, and continue the operation as each hundred is spent.