The Loan Council has accomplished this by eliminating conipetitive borrowing, and by restricting tot borrowing to the funds available for investment. In this way interest rates have been kept within reasonble limits, and industrial investment has not been handicapped by competitive public borrowing.
The Council consists of the Prime Minister, the State Premiers and eir respective Treasurers. The Council meets periodically, and loan programmes are submitted, adjusted ind a final agreement on loans for the ensuing year is placed before the Board of the Commonwealth* Bank.
If the Board approves, it agrees to underwrite the loans. If not, it submits alternative plans to the Council, and a compromise is eventually reached.
"Grabbing All the Money"
Meetings of the Council follow a well-worn path. The States accuse the Commonwealth of "grabbing all he money." The smaller States lay milar charges against New South Wales and Victoria, both "liberal pender The Council then invites he Bank Board to underwrite larger loans than are really needed. Thej Board reduces the amount.
The Premiers indignantly accuse he Bank Board of exercising a finvincial dictatorship, and secretly conatulate themselves on having brained the right to borrow more han they had dared to expect. The recent meeting of the Council n Melbourne was exceptional hat the discussions were at times note acrimonious than usual, and cocause the smaller States protested at the policy of semi-governmental Forced Out by the War However, it would not'be surprising if Mr. Stevens eventually entered the Commonwealth sphere, where his talents would have greater scope.
Such a move has been canvassed from lime to time, but Mr, Stevens has failed to respond. Unless -his elevation to the Prime Ministership were certain, Mr. Steveng would prefer to remain Premier of New South Wales,
Text read from the printed page and cleaned; old type leaves the occasional error.