FEDERAL FINANCES

Rotorua Morning Post, Volume 2, Issue 363, 26 October 1932, Page 5

FEDERAL FINANCES

(Press. Assn.—

DEFIC1T MAY BE UNDER NINE MILLION EST1MATE INTERNAL LOAN MOOTED

■By Telegraph — Copyrlght).

Rec. Oct. 25. Melbourne, Tuesday. The Premiers' Conference began with a definite assurance from each Premier that his Government was living up to the assurances given at the last conference. With regard to the Budgetary deficits it was made apparent that the stipulated total of the deficit of £9,000,000 will not be exeeeded, and may possihly he £1,000,000 less. The impression created at the conference was that the Budgetary position was exceedingly satisfactory, and in this favourable atmosphere the conference proceeded to discuss means of obtaining the 'financial accommodation needed to carry ^ the Governments through the remafnder of the present financial year. It was learned that the question of raising an internal loan of £20,000,000 was discussed. The Sydney Morning Herald correspondent in Melbourne says that it is understood the banlcs have agreed as from November 21, to a reduction from 4 per cent. to 3£ in the rate of interest paid on Commonwealth Treasury bills. This action should prepare the way for a further reduction in fixed deposit rates.