STATE RURAL BANK

Otago Daily Times, Issue 26637, 6 December 1947, Page 8

STATE RURAL BANK

GREATER POWERS SOUGHT OUTCOME OF NATIONALISATION LEGISLATION SYDNEY,. Dec. 5. Notice that he will introduce a Bill to authorise the Rural Bank to" conduct general banking business has been given in the Legislative Assembly of New South Wales by the Premier, Mr James McGirr. The Government intends to have the Bill pass before Parliament rises for the Christmas recess. The Cabinet decision to place the Rural Bank,"which is State-owned, on the same footing as the other trading banks is a direct outcome of the Commonwealth Government legislation to nationalise private banks. Under the Federal Banking Act just passed, State banks are exempt from the nationalisation scheme. Under its present constitution the Rural Bank can accept accounts from all classes of customers, but can grant overdrafts only to primary producers or organisations associated with primary production. At present the State Government banks with the Bank of New South Wales and the Commercial Banking Company of Sydney, both of which would be taken over by the Commonwealth Bank if the Bank Nationalisation Act came into force.