Control Of Banks Criticised

Press, Volume CVI, Issue 31316, 11 March 1967, Page 25

Control Of Banks Criticised

(New Zealand Preet Association)

AUCKLAND, March 10.

World governments recognised that the restriction of credit was a major tool in the control of a nation’s credit, Mr J. W. Dunlop, of Sydney, a director of the Bank of New South Wales, said at the official opening of the bank’s ney Auckland premises.

Governments had found that the easy way to control credit was through the banking system.

“But the embarrassing fact is that stopping banks from lending does not stop people from borrowing,” said Mr Dunlop.

“Borrowers go outside the banking system and borrow from others nearly always less skilled than bankers in applying proper principles and tests, and nearly always at costs far greater than banker’s costs. “The bank doesn’t hide the fact that it would like more freedom,” said Mr Dunlop. "It sincerely believes that it would be for the good of the communities in which it operates, in Australia as well as New Zealand, if it had more freedom. But whether it gets more freedom or not, it has faith in New Zealand.” The Prime Minister (Mr Holyoake) who officiaUy opened the bank and sealed

a time capsule, said the new building was a fitting status symbol for one of the oldest and most progressive companies in this part of the world.

It was also a highly functional building that would serve the community well. Mr Holyoake said it was not the occasion for a State of the Nation address. “You all know the position as well as I do. You know what the Government is doing and why it is doing it,” he said. “The measures that have been taken — and will be taken—will be successful. But we must all play our part.”

Elected To Council.—Mr J. P. Butt, of Ohoka, has been elected to represent the Oxford-Eyre-Rangiora subdistrict on the council of the North Canterbury Acclimatistion Society. He fills a vacancy caused by the death of Mr B. T. Roper.