AUSTRALIAN GOVERNMENT

Hokitika Guardian, 25 November 1929, Page 5

AUSTRALIAN GOVERNMENT

ASSURES MONEY FOR INDUSTRY

(Australian Press Association).

CANBERRA, November 24

Air Theodore announces that the Federal Labour Aiinistry’s new banking proposals involve the removal of the present restrictions on the proportion of notes to the cash reserve.

The proposals provide also for the transfer of the power to fix the exchange rates with London from the Associated Banks to the Commonwealth Bank.

Hon. Frank Anstey, Minister of Health, forestalled Mr Theodore, who s the Federal Treasurer, with an explanation of the Government’s intentions. Mr Anstey declared that the hanking institutions must cease to be masters, and they must become the servants of the industry of the Commonwealth. Mr Anstey pointed out that the exchange rates at present are not being fixed in accordance with the movements and money and of credit as between Australia and London", hut they are largely based on the result of secret understandings made between the private hanks. “In these periods of depression,” he said, “ it is essential that advances should be made on good security. Labour will enable the Commonwealth Bank to have the opportunity of providing a great service to the nation, and the private hanks must then either follow suit, or perish. Thus industry will be promoted, employment will follow, and prosperity is the outcome.” America’s prosperity, Mr Anstey claims, is largely based oil the progressive policy of her financial institutions.

HOSTILITY TO THE NEW POLICY LONDON, Nov. 24.

The Financial News states: The now super tax proposals in Australia will accentuate complaints of double taxation from those who are liable to ineome tax, both here and in Australia. The effects of the proposed increase in the Customs duties may he considerably more smi us for the British manufacturer, and he will necessarily he injured: while from Australia’s standpoint, the tariff chances will perpetuate the policy which has already been condemned as contributing to that failure of expansion of the national income which is the root of her financial difficulties. The editorial says that details of the hanking proposals are awaited, but it addis: A disturbing element lies in tne source from which they proceed. It concludes: Mr Theodore has admitted that Australia’s credit is sometliat impaired, and his statement lias not given grounds for thinking that he is on the right road to restore it.