BANKERS SUBMIT

Hokitika Guardian, 27 May 1931, Page 3

BANKERS SUBMIT

TO LOWE!? INTEREST RATES. (Australian Press Association.) MELBOURNE, May 20. Tii 0 Premiers’ Conference, which is now examining the reports of the expeats' •upon: •■A'ustmHa’s' ’'cWilrrtfiie- • and financial prohlems, to-day received a 'plii|h Uiijtjis' ves, for a Conversion loan 'covering the"" outstanding Common 1 wealth and Sjtate, ...securities that arp ! domiciled in Australia. , j This plan proposes ,an adjustment in ’ the interest on the Government seeuri 1 ties with the object of saving 22J- per ' cen.t on the total interest bill. What the plan proposes is ns follows :—(]) The interest on the new securities to be exempt from the Commonwealth supertax of 7.1 percent., and also fV;>i, any future taxation, but to lie subject 1 jO the other existing taxation. (2) The currency of tlie new conversion loan to he forty years, with the option to rc'delW tfli(»"wTiVi]fe'' dr' part' of .the loan after ten years. * 1 The hankers, in addition,, suggest the 1 reduction' also of the interest, rates paid by the local governing bodies, .'and tlie reduction of interest upop bank deposits of all kinds,, , and upon j all bank doans, or overdrafts or advances. In the event of the .general ;r,, plan being approved, the bankets state credit facilities, would be provided: foy industry, which, in turn, would, lead to the. absorption of the , unemployed. The bankers expressed the hope tlmr co-operation would occur between the governments, hanks, the financial institutions'and the commercial community with a view to creating confidence in London so as to enable the short term debts to he funded and a certain i amount of long term credit to he provided. The opinion is further expressed that this would ease the cost of exchange, and would, create easier conditions for future loan ..conversions.. -