BANKING LEGISLATIO.N

Auckland Star, Volume LIV, Issue 147, 22 June 1923, Page 9

BANKING LEGISLATIO.N

A CETTICAL LIBERAL.

(Bj Telegraph-—Parliamentary Keporter.} WELLINGTON, Thursday.

"The more he looked at the banking ' 'legislation of the present Government, the more he rpalisert its injustice to the .people," said Mr. Yeitoh. He did not .srish to attack the Bank of New Zealand, he explained, but he proceeded to take it as an example of how the people's interests had been made, subservient to 'those of. private profit. Legislation : had been driven through Parliament by .the Premier in 10] 3 with his big ma]6nf?,"and an unwarranted concession made to the banks' private shareholders. Prior to 1913 the State ewned one half Of the Bank of New Zealand, receiving ]0 per cent dividends, and private, shareholders IS per cent. But, as a result of 1013 and 1020 legislation advantage after advantage had been given to private . slareholders at the expense of the interests of the Slate, despite that a majority directors were appointed by the A most necessary amend"JMnt of law was that no Government fipresentative on the-directorate should bec_a holder of shares in the bank. Ju rijjgested that the recent increase o* capital would not add a penny to the resources for use of the bank's customers, as the £750,000 paid by shareholders for new shares would simply be transferred from existing dejposits in the bank. The Government seemed to have been completely outgeneralled.

Jlr. Wilford: Led like a lamb to the slaughter.

Mr. Veitch: Yes, and apparently wil lingly.

3lr. Veitch went to say that last year the State received a dividend of 2/ in the £ on its one-third interest in the link, while the private shareholder got" 2/8 in the £, surely something should se done to limit the bank's profits. It had long passed the position of being imply safeguarded, because it could pay dividends simply out of its investments without doing banking. It was immoral that farmers and others should he pwhed into bankruptcy on account of nigh interest rates, while the Bank of aew Zealand made such enormous profits.' r