NEED FOR ECONOMY

Hokitika Guardian, 9 August 1930, Page 3

NEED FOR ECONOMY

AUSTR ALIAN BANKERS’ VIEWS.

At . the -annual meeting of 'the Commercial Banking Company of Sydney, held in .Sydney the other day’, the cluiinnair (Mr George J. Cohen) said that at* Ahnost every gathering of the shareholders . lor many years special attention had been directed to the need for economy in all departments of national business and private life, so that heavy liabilities might be provided for, and the people might live within their income. After a long period of over-borrowing and overspending a point had been reacned at which,a halt had to be made. For too long fictitious prosperity had been enjoyed, and we must be cut downETA joyed, and we must now face the facts Costs of government and production must be cut down, stringent econom.v must be made to adjust tile trade balance to .maintain the country’s credit. Air Cohen added that the bank joined in the welcome to Australia of Sir Otto Niemeyer and believed that his: advice and influence, would greatly--assist those who were, endeavouring to m.-et the' difficulties of the present situation. Referring to the proposals 'of'the Commonwealth .'..Ministry 'to establish ri central reserve bank* Air Cohen said there was no objection to a central bank with a sound constitution which would be curried on to help and not restrict or hinder the trading banks in meeting the needs of the community. Such a bank should not be subject to the disturbing and weakening effects of political influence and interference. The present Commonwealth Bank had efficiently performed many of the functions of a. central reserve bank, and it would be preferable to allow it to derelop into a true reserve bank rather than to cause disturbance at a critical time hv treating a- new institution.

ANOTHER BANKER’S YIEW. •• .•;•! ! ! i ■ I : Sir Mark Sheldon* chairman of the Australian-. Bank of Commerce, also impressed oiFshare.houlders at. the annual meeting of the bank in Sydney 'on July 29tU; I The’ neffd vfor the!. -'strictest economy;. .The vital question, - said Sir •Mark Sheldon, was to find a ;remedy for the; ekisling, depression.- “It can be remedipdj,” he: said, • “and:remedied much more > quickly, than most people are willing to admit, if we will face the position and -recognise the facts. The people must,!see that in public affairs economy 1 ' is practised. They must recognise that we cannot do now what we were able to do when our exports were worth! 50 per cent, more than to-day, Jailtl were dititlressed by lavish borfb'Adngs procrastination only makes they situation more difficult; economies must, and will, be made sooner-or’later, and 'it- is fatal policy to try to maintain* the present governmenta 1 ,'aiul social' 1 structure on the lines 'that "these have been maintained in'!'the’past. It is> htt’- use attempting. frirtlicr to' delay "this adjustment by bridrea'sed taxation’arid internal borrowings'.' ■ These borrowings arid heavy imposts of taxation are withdrawing capital from industry and enterprise, thereby increasing unemployment. If tho individual is not employed in production, or is employed in unprofitable production, the country as a whole must suffer”