BANK OF NEW ZEALAND

Press, Volume LXXXI, Issue 24632, 31 July 1945, Page 3

BANK OF NEW ZEALAND

ADDRESSES AT NATIONAL PARTY LUNCHEON There were no valid reasons for the Government’s taking over the Bank of New Zealand, said Mr E. P. Wills in an address to members of the National Party at a luncheon yesterday. Mr F. Langstone had called it “a good proposition” in an address recently, and had contended that it would bring untold wealth and progress to New Zealand. The Government, Mr Langstone had said, would be able to control exchange. However, said Mr Wills, control of overseas funds was in the hands of the Reserve Bank, and our overseas funds came chiefly from the sale ot New Zealand produce. The country could import only the same amount of goods as there was-credit for overseas. It was sound business to charge interest for money, but not so to advance money which could not be repaid. Charging interest was the test for making money available. He said that controls now exercised by the Government made it unnecessary to take over the Bank of New Zealand. If the State was to say who could have overdrafts it was impossible to see where State control would end. “Our freedom and liberty are being ruthlessly cast away,” said Mr H. E. Radley. “Mr Nash, ‘the strong man,’ is bowing to an irresponsible Section of the Labour Party.” The Government had no mandate from the people to carry on with the proposal. It should be an election issue. As the proposal now stood it was a denial of the democratic rights of the people. Banking had to be safe, and if under the Government the bank suffered loss the taxpayer would have to make such losses good. Mr Langstone had referred to the shareholders as ‘‘miserable ingrates,” but, said Mr Radley, ‘‘in 1899 the shareholders lost £1,000,000 to save the bank and between 1899 and 1945 had paid £5,100,000, plus taxes, to the Government. Those are hardly the actions of ‘miserable ingrates.’ ’* If farmers applied for loans they would be told that unless they grew a specific crop the loan would not be granted. Mr Radley said that the Government were taking this step to prevent a split in the Labour Party. It was a definite step towards Socialism. Socialism only worked successfully at the beginning of the Christian era, and with a small measure of success in China 900 years ago, said Mr C. M. Kavanagh. Even Russia, which had operated its own bank since 1917, had raised one of the' highest loans of the war and had paid a high rates of interest. Private enterprise could not operate without interest, and interestfrpe loans were a method of slowingdown industry. Socialisation of the Bank - of New Zealand would not bring about a better standard of living, and in the long run the community would be worse off Private enterprise could not succeed if interest-free money were made available. A vote of thanks to the speakers for the amount of time and work they had done to bring the matter before the public was carried with acclamation.