BANK CREDIT Court will hear league

Press, Volume CXI, Issue 32666, 23 July 1971, Page 2

BANK CREDIT Court will hear league

•‘Ttye Press” Special Service

WELLINGTON, July 22.

The Supreme Court is to hear the Social Credit Political League request for a declaratory judgment on whether trading banks have legal power to create credit.

The league filed documents last month asking for a judgment under the Declaratory Judgments Act.

At the time, the leader of the league (Mr J. B. O’Brien) said the league claimed the banks were creating credit out of nothing, and this was similar to a false pretence because created credit was not represented by existing credit. There was some doubt among lawyers whether the league was a sufficiently interested party to be able to bring an action on the banks’ activities. But Mr O’Brien said yesterday that the Chief Justice (Sir Richard Wild) had sat in chambers, and summonses as listed on Mr O’Brien’s motion had been sent to the five trading banks, the Reserve Bank and the Attorney-General.

This makes it clear that the league is competent to bring the action.

Mr O'Brien’s lawyer, Mr K. Ryan, was compiling a case with the help of the league’s researchers, and it was hoped the hearing could begin by the end of September, Mr O'Brien said.

The Declaratory Judgments Act provides that any person who has done or desires to do any act, the validity, legality or effect of which depends on the interpretation or validity of any statute, regulation, by-law or certain other legal documents or agreements, or any other person who claims any right under a statute, regulation, by-law, or other legal document, may apply to the Supreme Court for a declaratory order interpreting the relevant document.

Any declaration of the Court has the force of law. However, the Court is not obliged to issue an order on a case brought before it.