PROGRESS ON BILL.

Auckland Star, Volume LXIV, Issue 259, 2 November 1933, Page 10

PROGRESS ON BILL.

ALL AMENDMENTS REJECTED.

EASY PASSAGE ASSURED.

(By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. Twelve clauses of the Reserve Bank of New Zealand Bill had passed the test of committee discussion when the House adjourned at 12.25 this morning. The amendments were usually rejected "by a majority of at least 20, and this fact ensures, beyond! question, that the clauses providing for the bank's establishment, its capital and the definition of its objects will become law in their original form. Many efforts were made by Labour members to have passed amendments which would have made the bank purely a State institution. Tliey endeavoured to eliminate private shareholding, and also the references to the shareholders' powers. The Leader of the Opposition, ili\ M. J. Savage, in emphasising the desire for a State bank, declared there was no intention of putting its administration into the Cabinet room. "All we ask for," he said, "is that this should be a State institution, which should not be limited to shares." This principle, as enunciated in a Labour amendment, was rejected by 43 votes to 23. Mr. A. M. Samuel (Coalition Reform, Thames) supported Labour's State bank amendment. The Government's attitude, as defined by the Prime Minister in simple terms, was that if you were running a shop you should not antagonise your customers. The reserve 'hank was a bankers' hank, and the Government desired it to start with the immediate confidence of the hanking and commercial community, and it was the private shareholding interest that engendered this.

One Concession. The critics, having failed, to eliminate the shareholders, became concerned to restrict them to New Zealanders, and on this point the Minister of Finance made tlie only concession during the sitting. He undertook to examine the position to see if there was sufficient power to exclude undesirable shareholders. He said the allocation of shares and tlieir transfer were subject to the approval of the Finance Minister, but if that •were inadequate he would have the clause redrafted. The progress made thoroughly satisfied the Ministers, who were particularly pleased that the short title was not debated, as they had feared, for many hours. Purposes of the Bank. Shortly after midnight all matters relating to the bank's capital and establishment had been adopted without amendment, and' a new phase arose on the clause defining the general object and purposes of the Reserve Bank. Its primary duty is to exercise control over monetary circulation and credit in New Zealand, to the end that the economic welfare of the Dominion may be promoted and maintained. Mr. H. G. R. Mason (Labour, Auckland Suburbs) introduced an amendment providing that the primary duty of the bank should be to establish a monetary system based on goods and services and to maintain control over circulation and credit and to that • end that bank notes issued by it, expressed in terms of wholesale prices of New Zealand produced commodities, should remain stable. This was negatived by 43 votes to 26. The best vote the Opposition obtained was 27, on the private shareholding question.. The committee resumes this afternoon.