FEDERAL FINANCE

Hokitika Guardian, 4 February 1932, Page 5

FEDERAL FINANCE

HIGH COURT WRIT ISSUED

(Australian Press Association.)

SYDNEY, February 3.

A Federal High Court writ was issued this afternoon in Sydney against the State of New South Wales, claiming the repayment of £243,118, and claiming also an account of the monies due under tho Financial Agreement, and the payment of the. cost of exchange between Australia and England or America on the moneys payable as interest. The matter will be taken to trial without delay.

FEDERA L PRECAUTION

AIEL BO URNE, February 3

Tim Common weal tli Crown Law Officers to-day issued a writ against New South Wales in respect of its default.

The Commonwealth Government lias decided to ask the banks to finance the loan programmes for the remainder of the year, but New South Wales’ share of this money will be retained in order to pay interest, aggregating seven millions, which is due by the end of this year, and as to which Air Lang is likely to default.

REQUEST TO BONDHOLDERS’

AGENTS,

LONDON, February 2,

Immediately lie received Mr Lang’s cablegram, Mr Willis approached tho Westminster Bank, and the Chase National Bank fiscal agents, respectively, on behalf of British and American bondholders, with ft request for a year’s suspension of interest hero and in America.

Air Willis told the Australian Press Association that the request obviously implied satisfactory settlement at the end of the year’s moratorium, but the negotiations were now only in the preliminary stage.

LYON’S HELP SUGGESTED

LONDON. February 2,

AU Willis says that he has information inclining him strongly to the belief that Air Lyons would he well actvised, “even at this late hour, to taico a wider Australian outlook, to find a way out of the difficulty.

EMPIRE ECONO All C CON

FERENCE.

OTTAWA, February 2.

Mondav. July IBth., is the date of the opening of the Imperial Economic Conference here, according to an intimation by the highest authority tonight. } N.S.W. DEFAULT. COMMONWEALTH TO PAY INTEREST. MELBOURNE, February 4. The Prime Minister announced that the Commonwealth Government, while admitting ultimate liability for bondholders unpaid interest, declares the New South Wales Government must first provide the Commonwealth with the funds necessary to meet all liabilities on the public debt of that State. The Commonwealth Government has arranged to pay interest due to New South Wales bondholders direct, instead of to the Government of New South Wales,

LONDON, February 3

The trustee- status of New South Wales and other Australian loans rs not affected by the default, a financial authority told a ‘‘Sun'' representative. The Trustee Colonial Stocks Acts do not contain provisions enabling Dominion .stocks to he deprived of thei' trustee status, once it is acquired. PRESS OPINION. LONDON, February 3. Continued defiuilt may alter the trustee status of New South Wales loans, according to the “Financial News.” It is probable the authorities will lie requested to remove the loan from the trustee list. The position would immediately arise whether other New South Wales loans should not he removed at the same time. London agents are taking legal advice regarding what should be done.