BANKS’ WARNING

Hokitika Guardian, 19 December 1930, Page 3

BANKS’ WARNING

TO STATE GOVERNMENTS

(Australian Press Association)

(Received this day at 8 a.m.) SYDNEY, December 18.

A solemn warning by the banks of Australia to the various Governments to balance their budgets and reduce their costs was issued by the Bank of New South Wales on behalf of all th<s other banks. Their statement proceeds that unless effective steps are taken immediately, the time is coining when the hanks and other financial institutions will be unable to assist the Governments to meet the salaries, wages and other committments except at the expense of widening the gap already in evidence between costs of and the returns from Australian industries. Had the policy adopted at the Premiers Conference, at Melbourne, last August been carried fully into effect the drift could have been checked. Unfortunately that policy had not being fully observed and the banks are faced with heavy demands to enable the Government’s to meet their daily obligations. A continuance of such demands-will force upon the hanks a drastic curtailment of adyances to customers. The hanks are unable to accept responsibilty for the consequences which must inevitably follow, but it is most desirable that the public should he warned of tbo facts. ’Hie' hanks have made efforts unparalleled in the.history of the country to help all classes and extra assistance in the last three years has reached seventy millions sterling in accommodation granted all round. It is essential therefore that industry and trade be placed on a basis that will show a margin for the living of the producer and for the maintenace of solvency in public and private finances in Australia.