21 FEBRUARY 1931, Page 41

In view of Australia's present difficulties, Mr. A. L. Gordon

Mackay's able study of The Australian Banking and Credit System (P. S. King, 12s. 6d.) appears opportunely. The author is ti member of the staff of Adelaide University and deals frankly and dispassionately with his highly controversial . subject. In the historical sketch the panic of 1898, when twelve banks suspended payment, is, of course, the most famous episode, and Mr. Mackay shows that it arose out of wild speculation, though it was .precipitated by the Baring .crisis. His discussion of post-War developments, and especially of the need for some kind of central bank—perhaps on the South African model—is of special interest, as the

present Federal Ministry's proposal- for -a-- Central-Reserwe Bank apart from the Commonwealth Bank has not yet fogad acceptance. Mr. Mackay's bOok ends on the eve of Sir Otto Niemeyer's mission, but it throws new light, from the banking side, on the :Australian economic problem and deserves careful reading.