A STATE BANK

Evening Post, Volume CIV, Issue 25, 29 July 1922, Page 8

A STATE BANK

AN INTERESTING DEBATE. That the establishment of a State bank is in the best interests of the Dominion was the subject of the annual debate, between the Wellington and Christchurch Accountant Students'. Societies at the Accountants' Chambers 'last night. Mr. E. W. Hunt, president of. the Wellington Society, was in the chair, and there was a full attendance of members.' There have been five previous contests of which Wellington has won three and Christchurch two. The judge at this contest was Mr. D. S. Smith, LL.M.: The affirmative side wa6 taken by Wellington, and was opened by Mr. Il'. H. Bass, who contended that a Stalo bank would be of greater value than tho existing system. The question was whether- they were satisfied with tho present system. Were the farmers satisfied? Were' the merchants satisfied ? Both of 'them were paying heavy rates' of interest for the accommodation,, and they, were not satisfied, and therefore they needed a change. They did .not advocate a State monopoly, but they urged that.a State bank: could be established side bys side- with the bank. With a State bank, public confidence would be greater than in the case of private banks, and, on the other hand, it would be able to give greater assistance to the community. In addition, the stability of the note issue would be guaranteed. A State. bank would be able to make advances at interest Tates lower than at present. That would bo of great value .to the producers and other sections of the community, and all would benefit.

Mr. G. H. Bartlett led the debate for the opponents from Christchurch. The questions to be answered were: Was the Government capable of conducting such a bank, and was the scheme practicable ? He agreed tliat it was practicable, but ; he contended that it was not reasonable to suppose that a Government could carry out such project. He'predicted that if a State bank were established.the "poor old taxpayerI', would be called on annually to make good a, huge deficit. '■;' There would, he contended, be .a very real danger of political influence. The remarks made about advances were merely the result of the fact that when applications for advances were made, banks had! refused advances to" carry on. wild-cat schemes. Governments had never been not^d for the soundness of their methods,' and he contrasted the sound methods adopted by the banks at present with the adventurous lending advocated by their critics.

At the close of the debate the judg«i made his award as follows :—Wellington, 316; Christchurch, 329.

The meeting passed a very hearty vote of thanks to Mr. Smith for judging the debate, and the Chairman announced that the Hawera Society had sent in a challenge for the shield. ■ .