THE FINANCIAL STRESS

Hokitika Guardian, 31 July 1931, Page 5

THE FINANCIAL STRESS

STATEMENT BY COMMONV/EALTH BANK. (Australian Press Association.) (Received this day at 10.15 a.m.) 'SYDNEY, July 30. Sii Robert Gibson (Chairman of the Commonwealth Bank Board) announces that negotiations by tlie Commonwealth Bank for. the absorption of New South Wales Government Savings Bank are definitely off. He- says the atmosphere created by New South Wales Government is •such as precludes the Commonwealth Bank in the national interest from being further involved in the a flaps of the State Savings Bank. In a long statement Sir ]|. Gibson reviews the events prior to the Savings Bank closing its doors oil April 23rd., and also the subsequent negotiations for a merger with the Commonwealth Bank. He mentions that the Savings Bank was undoubtedly prejudiced by the Lang Government’s failure to meet its interest obligations, while later the Premier sought to mako the merger terms the shuttlecock of politics. Gibson denied that the terms were harsh. On tlie contrary, they were the best possible in the exceptional circumstances The Premier had, according to reports provided a biased criticism of the merger terms, revealing beyond doubt that the State Government had failed to realise the seriousness of the financial position. Hall (President of the Government Savings Bank and Rural Bank) informed Mr Lang by letter that if financial assistance were not forthcoming immediately the Rural Bank must default, and be unable to give further help to farmers.