N.S.W. DEBTS

Rotorua Morning Post, Volume 1, Issue 148, 15 February 1932, Page 5

N.S.W. DEBTS

(Press. Assn.-

commonwealth bank asked tq advance -amount FEDERAL SAFEGTTARDS

: . , 1 MELBOURNE, -Saturday. In the absence of any assuranCe by Mi\ Lan'g that his Governmenit will ma'ke1 any contribution' to -discharge the State's obligations to oversea and Australian' bondholders, Mr. S. M. Bruce, Assistant Federal Treasurer, to-day requested the " Commonwealth Baiik'to advance- immediately the full ambunt1 of • the loan money allocated td New South W ales for the unexpired portion of the 'financial' year-. ! If "the bank accedes'to this. request the money- will "be with-held by the Federal Government -from the State . tb offset the pro'poSbd early payment of the interest- iiidebtedness of New . Sbuth Wales. - ■ ' - 1 In ' reply to the request of the Prime 'Minister that the New South , Wales Government should pay £707,763' in-p'artial discharge of-'.the intCrest due 1 to overseas- bondholders, the State Premier, Mr. Lang, :telegraphed lasfnight saying: "Counsel advises me that,- in view of the exist-' ing' and threatened litigatiori by the Commonwealth Government against New 'Sbuth Wales, it is-necessary that the* Commonwealth- should undertake that it will not, without the consent of this State,' use or suffer to be used any ? reply to your telegram in evidence against- this-State, in any pend-i-no- fnturp lit.ip'atio'n."

-By Telegraph — Copyright).