A BANK REVIEW

Hokitika Guardian, 12 March 1931, Page 5

A BANK REVIEW

AUSTRALIA’S CRITICAL POSITION. (Australian Press Association.) (Received 10.30 a.m.) SYDNEY. .March 12. The directors of the Commonwealth Bank accompany the accounts for the half year, with a critical review oi the financial position in Australia. No period in Australia’s history, they state, presented greater di’ilieuities in the financial life than those which faced the country during tli (; half year ended December 31st. 'Flu* continued shrinkage of tin* national income due to the steady declining world’s prices for the exportable products of the country, had a most disastrous result anil was largely responsible fot

ilio economic, position facing the community. The 'position has boon faced and the problem is capable of being dealt with, only by ourselves. Fortunately for the country seasonal conditions of a more favourable nature have lately prevailed, and to-day Australia as a whole, is free front drought conditions. fn the light of past experience, We must now keep before us that oven if the conditions develop, which enable overseas borrowing on favourable conditions, we must refrain from indulgence in this direction to an extent creating a position of false prosperity. Calls made upon the banking resources in Australia to meet the general position were never relaxed, and the very serious aspect of this matter reflects itself in the heavy drain on hanking funds, to carry over Govermentnl budget 'deficits. This process of an inflationary nature and continual indulgence, must eventually lead to tTie undermining of our monetary system. There is no escape from the results of unsound methods, and rectification can only he achieved through the adoption of sane, sound procedure. The longer the reckoning remains nnfaced, the more serious it becomes.