AUSTRALIA’S TRADE.

Taranaki Daily News, 13 November 1922, Page 5

AUSTRALIA’S TRADE.

PROPOSALS FOR FINANCING. FINANCIAL EXPERT’S VIEWS. by Telegraph.- -Press Assr..—Copyright. Received Nov. 12, 5.5 p.m. London, Nov. 11. The Financial News, discussing proposals for financing exports, states the two factors which have given rise to the present state of affairs are, firstly, the Australian import tariff, and, secondly, the ban upon gold movement. The problem simply is how, despite them, to carry on the exchange business with the least loss to customers and trades. The paper proceeds: “We fail to see why the Commonwealth Bank and the Australian Banks holding balances in London cannot solve the question between them. If the Commonwealth Bank were to accept bills on other Australian banks as cover to the extent of the overseas balances available the balances jn the form of a further note issue would 'become available in Australia forthwith. There is no reason other than statutoiy restrictions why the Commonwealth’s banks should remain limited to gold coin and bullion or specified gilt edged investments. Firstclass bank bills are gilt edged securities m everything save name; in fact, they are the best possible securities. “The situation when analysed discloses a flaw in the Commonwealth Bank Act, involving limitation, which hinders the banks doing business and from co-operating together as fully as they might and ought. Issues of notes secured on bank bills representing the balance available abroad, would automatically 'be returned as bills matured, and by these means exchage would readily be steadied.” —Aus.-N.Z. Cable Association.