FINANCIAL REPORT

Hokitika Guardian, 19 June 1931, Page 6

FINANCIAL REPORT

A SENSATIONAL FINDING. (United Press Association—By Electric Telegraph.—Copyright.) ' LONDON, June 18. The “Daily .Herald” lobbyist says that the report of the MacMillan Committee ion Finance and Commerce, which Committee was appointed in November 1929, will be presented to the Government this week. The ’ writer also forecasts that there will be a majority report severely criticising the 'Bank of England for its policy during the trade depression, and suggesting that the Bank of England at present could materially improve trade by making credit more easily available, and by increasing the amount of money that is circulating. This policy, according to the majority report, should be carried out in co-operauon with the Central Reserve Bank of America, the ißank of France, and other great Central Banks.

The majority report does not advocate any wages or salary reductions as being a practical remedy for the trade crisis. This attitude is diametrically opposed in that respect to .the view expressed by Doctor Spronli, in an address to the .Statistical Society, in which lie declared that the Central bankers are of the opinion that they can do nothing tor .trade until drastic cuts in wages and iii salaries are effected.

The report is likely to create a sensation as the Bank of England's policy will be openly condemned by the 'Committee, which is one including some of the greatest financial experts In Britain.

There will also, be minority reports, one of which will propose tariff protection, and also the establishment of a National Investment Board, to issue both short-term and long-term loans to industry.

BRITISH BANKERS. PROVIDE MILLIONS FOR AUSTRIA. BERLIN, June 18. There has been a dramatic decision by the Bank of England to provide credit for Austria to the extent of four and a half millions sterling. This has averted a probable declaration of Austrian bankruptcy, says the -‘News Chronicle’s” correspondent. There were negotiations between the Austrian Government and French bankers, which broke down, owing to French political demands.

The Berlin and Vienna newspapers welcome the ’Bank’s action, as showing that British finance is prepared to apply its vast resources to the restoration of European finance.