FINANCIAL

Hokitika Guardian, 19 August 1930, Page 2

FINANCIAL

SALE OF TREASURY BILLS. (By Telegraph—Per Press Association.) WELLINGTON, August 18. It is understood that the Government is calling for applications from the Banks for Treasury bills of short date, or until the collections of land tax, and, later, from income tax, are available. The rates of interest at which tenders may he submitted, are likely to he definitely influenced by the proposed increases in the bank note tax and in the income tax to be paid by, the banks. In other words, higher rates of interest may be asked for these new Treasury bills, in consequence of the proposed increased taxation.

The increase in the note tax, it given effect to, is likely to lead to a realisation of Government securities, and to a considerable calling up of advances in .order to reduce the note circulation, and the charges of banks may be increased. It has been explained that the Banks must, perforce, hold a substantial quantity, of gold in their vaults as a foundation of credit, as the Government would have to do, if it were the sole note-issuing authority. Notes must have agood backing, The views of the Banks on the proposed taxation an'd their objections to it, and the probable consequences, if it is carried, have been fully set out in a private deputation to the Government.