DEMANDS ON N.S.W.
BY COMMONWEALTH BANK. (Australian Press Association.) "3U SYDNEY, July 28,. In the New South Wales Legislative Assembly to-day, there was tabled a letter that Mr Lang has sent to the Commonwealth Bank seeking for a •modification of its terms for “the proposed merger with" the New South Wales Savings Bank. . M r Lang ill his letter asked the Commonwealth Bank Board, to discuss a plan for the re-opening of the NewSouth Wales Government .Savings Bank as a State institution, and he has offered to lodge up to twenty millions’ worth of Government securities against a backing of ten millions that is sought from the Commonwealth Bank. " Mr Lang has also objected to a demand being made upon the State of New South Wales of nearly thirty-two millions .sterling, by half-yearly instalments, over a term of ten years, commencing in the year 1934 , and entailing upon the State’s taxpayers an annual payment of between - three and four millions. This, Mr Lang contended, in view of the present fiiianta- 1 stress, was likely to be beyond the capability of the State Government. 1 Further, by the Commonwealth ' Bank stipulating that the State of New South Wales shall not at any -,time recommence banking, it virtually meant the liquidation of the rural advances, arid the advances for homes sections of the New South Wales Savings Bank, with a 'consequent heavy loss of the State, and ruin to many of the primary producers. The letter is now being considered by the Executive of the Commonwealth Bank. THE MERGER TERMS. (SYDNEY, July 28. At all brandies of the State Savings Bank, the old-fashioned placards are displayed on the doors and windows: “Payment suspended until further notice.” Mr Lang would make no statement after the Cabinet meeting oil Monday, beyond confirming the announcement that lie had sent a letter to’Mr Riddle, i Tt is iiinderstoqd this makes a request for reconsideration of the terms of the proposed merger which'-Cabinet: regard far too drastic, and for the adoption . of which the Cabinet as unprepared to' 1 accent responsibility. , The dramatic collapse of the bank merger negotiations caused a painful sensation, particularly among do- ( oositors with the Government Savings Bank, who represent probably forty oer cent, of . the population of New' South Wales, and whole balances aggregate fifty-four millions. Their position is regarded as infinitely worse now* compared with the date on which the Savings Banks suspended payment some months, ago, as under the terms of tlie proposed merger the Commonwealth Bank had agreed to ration the depositors according to the eircum- j stancas and. permit small accounts to he closed. That widespread hardship , will ensue is generally admitted ill financial circles while whatever hope the Savings Bank’s two thousand , employees entertained of receiving posts in the Commonweatlli Bank has now practically gone. Commonwealth. loans weakened yesterday on the Sydney investment market, the various issues declining by 15(1 to 17s 6d. LANG’S IDEA. MAY APPEAL TO ELECTORS. SYDNEY, July 28. In the New South Wales Assembly replying to Mr T. Bavin (Loader of' the Opposition), the Premier, Mr Lang, said that he would make no general .statement until the position was cleared up with the Commonwealth Bank. Mr Lang said that the Government had nothing to keep back. He added: “And if necessary, he would appeal to the people and their patriotism.” Mr Reid (a. Nationalist) interjected: “You are not game.” FINANCE FOR N.S.W. LOAN COUNCIL TERMS. CANBERRA, July 28. Tn the Federal House of Representatives, 1 the 'Prime Minister, Mr Scullin, announced that lie had sent a telegram to Mr Lang conveying the terms on which the Loan Council would be prepared to provide temporary financial assistance to the New South Wales Government. These terms, he said, were that Mr Lang must join the Loan Council; that he must actually pass, and put into operation, the Premiers’ Plan, embracing a twenty per cent, reduction of adjustable expenditure ; and that he must undertake the responsibility for the . payment of the interest on the New Soutlb'Wales public debts. Mr Scullin added that if Mr Lang complied with these conditions, the Loan Council would approve of an issue of Treasury Bills covering the New South Wales July requirements; hut, so far as the State’s August requirements were concerned, that would he a matter to he dealt with by t-hei Loan Council at jts meeting in August.
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Hokitika Guardian, 29 July 1931, Page 3
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729DEMANDS ON N.S.W. Hokitika Guardian, 29 July 1931, Page 3
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