RESERVE BANK.

Auckland Star, Volume LXXI, Issue 236, 4 October 1940, Page 3

RESERVE BANK.

£27,000,000 ADVANCE.

QUESTION OF REPAYMENT.

WELLIXGTOX, this day.

Tflie Tise of the Reserve Bank by the State wee referred to in the House of Representatives laet night by the Rev. A. H. Xordmeyer (Government, Oamaru), who said that the bank had already been called upon to find a sum of over £27,000.000.

Sir Alfred Ransom (Xational, Pahiatua): Will you pay them back ? Mr. Xordmeyer: I am not concerned about that aspect. (Laughter.)

Xo one could determine beforehand the amount of Reserve Bank credit which it was safe to have ill circulation at any one time, he continued. It depended upon the circumstances existing at the time, and the volume of goods and services available. The Government could extend even further the uee of the Reserve Bank and would do eo for housing purposes and for other services as circumstances arose. He could eee the time coming after the war when, in order to maintain the security and stability of the Dominion, and to keep the farming community from disaster and bankruptcy, it would be necessary to call upon the Reserve Bank to an extent not hitherto availed of in order to maintain our financial and economic evetem.

Mr. Lee (Democratic Lal>our, Grey Lynn): Are you going to lose the peace? .Referring to Mr. Nordmeyer's statement that he was not concerned about whether the Reserve Bank would receive repayment for the money it advanced. Mr. Goosman (National, Waikato) said that it was" tantamount to saying that there was no intention of paying back the money.

Labour Voices: Be fair. The Prime Minister, Mr. Fraeer: You cannot get away with that. Mr. Gooeman: I say I have got away with it. (Laughter.)

Continuing, he said the Government had got away with £27,000,000 from the Reserve Bank and the member for Oamaru had informed the country that there wae no intention of paying it back. There were further cries of "Be fair" from the Government benches, interspersed with a chorus of "Xo, no."— (Parliamentary Reporter.)