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Hokitika Guardian, 18 August 1930, Page 4

Wren Mr Scull in brought down bis much-criticised Budget lie rightly emphasised the need for securing the national credit on stable basis. If the present crisis is to be successfully tided over, the expenses of administration must be cut down, imports must be reduced, and borrowing must be limited to strictly necessary purposes. But it is also imperative as an exenange remarked, that the credit of the Commonwealth should be maintained at a high level on the London Money Market, and for this purpose there is need for co-operative action between the principal banks to render their joint funds available when required, for the discharge of financial obligations at Home. Immediately after Mr Soullin’a warning had been issued a conference of bunkers was bold at Melbourne, presided over by Sir’Robert Gibson, chairman of directors of the Commonwealth Rank, and attended by the general managers of the the great trading banks of Australia. The purpose of the conference, as explained by the chairman, was to formulate a scheme for the. . “mobilisation” of moneys coming, into the hands of the London branches of these banks through commercial channels, in such a way that interest payments due from the- Commonwealth Government should be a first charge upon these funds. The general principle thus set forth was accepted unanimously bv the . meeting, the general feeling being that “no question of the possibility of failure to meet these obligations, so far as the banks are able to meet the situation, should be permitted to be a matter of doubt.” In other words, Australian banks bold that “the national credit must be 'maintained at all costs,” and they are prepared to secure it, The practical details of the scheme were left for further consideration. But following on the arrival of Sir Otto Nieineyer, of the Bank of England, another conference of bankers and public, men, held in Sydney, adopted plans “under which the. available credit overseas will be mobilised at the disposal of the Commonwealth Government.” Even before this conference met, the news that it had been convened caused a reaction in favour of Australian stocks at Home, and £5.000,000 worth .of bills were discounted on satisfactory terms, explained by the ‘ News-Chropiclp” qs •due chiefly to the proposed !‘mobi]iaation A Loan. Council at Canberra has now confirmed this plan, and the presence of Sir Otto 'Niemeyer, who took part in the discussion, will no doubt strengthen, the' confidence of the City and the. Money Market- In tile sincerity of Australia’s resolve to reform herself financially nnd to discharge ad her obligations faithfully and honourably at any cost.