NATIONALISING BANKS

Auckland Star, Volume LXXV, Issue 152, 29 June 1944, Page 3

NATIONALISING BANKS

Proposals for the nationalisation of banking have recently evoked strong criticism #in Canada, where they have been rejected by Parliament. " "What would be achieved by nationalisation?" was asked recently by the chairman of the Royal Bank of Canada, who said that it was proposed to form one board of directors for the national bank monopoly instead of the 10 boards now operating the competitive chartered banks. "As we are organised to-day," he continued, "a prospective borrower may go from one bank to another if he fails to convince the first banker of his probity, ability and prospects. Under the socialistic system, unless the prospective borrower could convince the State bank cf the soundness of the project for which he sought to borrow money, and also that the transaction to be financed was in harmony with Socialist party objectives, he would be turned down, and would have no other bank to look to for a loan. History and experience lead us to expect that such a Government monopoly of banking would lead to favouritism of party adherents. At the same time, we should witness a spread of that sterility of ideas and enterprise which tends to accompany every human activity that finds itself in a position of unchallengable power," he added.