PARLIAMENT

Evening Post, Volume CVIII, Issue 55, 2 September 1924, Page 8

PARLIAMENT

TO-DAY'S PROCEEDINGS

MOUSE OF REPRESENTATIVES

The House of Representatives met at

2.30 ..p.im .'■■ ■■■■'■■..-■:. : Mi\ ,W. D J. Lysnar (Gisborne) asked the Prime/ Minister whether -in view of the serious and increasing difficulties in connection'with the exchange'queston,' he would communicate with the Imperial authorities ■to : ascertain 'if: they would legislate to authorise the issue of cm1-" rency> bills; in, exchange for gold, such .currency bills to'carry a rate of .interest of, say, 3 per cent., and to be.issued only to banks throughout the Empire, and "entitling holders in any part of the' Empire, if necessary, to exchange the currency, bills for gold; and also to authorise limited shipments of gold between London v and the banks throughout the. Empire, the public being barred from using: these currency bills or gold. Mr. Lysnar said that in view of the large ship-' merits of gold from England 'to America it was more than likely that the Imperial authorities would appreciate this possible source of increasing their supplies of gold, which, at the same time, would minimise to-a great extent the exchange difficulties. It seems-- imperatively necessary that' the Parliaments should give some-legis-lative assistance! to the banks with the object of assisting to-minimise this very serious financial disadvantage. .The right of the holder.to- exchange, the' currency bills for gold would, in 'all'probability never : be. exercised,-.'.unless'/-'perhaps/ for some exceptional purpose, as the Bills' themselves .would be equivalent, to gold, and •more easily transferable than the gold itself. : :-.':: ■:* .V ;-■:", . Mr./Massey.replied: "As previously iutimated, the. exchange' position has l.een .receiving serious attention,* and at the .present.:.time communications, are. passing between the Government and the Dominion 'representative in -London with Jthe .pbject; of effecting an imprpvement.'return to; the gold standard would, no: doubt, result in .the disappearance of. most of the; difficulties,, but this .is not', practicable; immediately. The. question .of issuing currency bills was, carer fully'considered, .by .the Imperial Economic Conference 'in. 1923,. when it was decided.: (2) 'That is:is,neither necessary nor desirable to adopt ■ complicated ,plans tor a.new instrument of croditj Euch: as .Empire, currency . bills,', which involve difficult 'and disputable '.constitu-' tional--and. financial questions:'- -It .was, However, concluded that) the position could be ameliorated by?, trie ; establish■ment of a central .bank .of issue ,in- this ,or .any other country with. ample power to effect and control exchange operations' ac, between; its,- own ;country*, and the country, or countries with which 'it principally trades.-' ..This bank could undeiv Jake to; issue . its .notes against 'sterling' or. recognised securities," such as British lieasuryvbills, and convert.back to sterl-' ■ing at fixed'} rates', a 'method known'as the exchange standard. ." Besides' buying and selling sterling, for notes, the. bank would have power; of rediscounting for the other-., banks, whereby-; "til's latter could/replenish their cash/ The-"central - hanki..would; also require.: to control the expansion and: contraction >6f credit as compelled Uy,the trend 6i the exchanges The whole: subject^ full o f ''difficulties; out it is.;..ijot ibejng lost "sight of "either m t ■*lls- or. any of tlie '.countries oi ..the...Empire, and any.:system-tendim; lo^an. improvement will be availed of " „ -the Reader. of ; ;the'.Oppositfon^ asked what .percentage the banks were-makin X Ol^_°f'. thc Producers. ,on,,the Exchanges; J-hat.i cannot tell you,"-replied the ■Prime.Minister: ..-..- " ;.■.:■;•■.■-.

atked the Minister of Railways whetherthe reported; summary of the Railway .board, of : Inquiry published on' Satm-:' -.a-iy was; correct? and when 'tho :report, wouldjbo;available to the House.- '■•■- ---f- r: --Spates replied; that.'ho ■ was- un-: ,able t to-;say, Whether';tlie pnbj'ishe'd re,port: .was;, correct -or otherwise? ' The recommendations of tho Board of Inquiry had, been-;considered by himself and Ithe .Railway Department had been .■asked^to-;supply him. with a 'statement showing what the effect of the findings .-would.-., bo;- on the Department. Whin ■tliatcame back it would go before- Cablet, which -would decide what to-do ' &o fan; as,- he' knew there would. then be no reason why members: should not have ♦ri **\ li^Povt,- -but ifseemed- tofhim' tliat -if the. reportrwent out: exactly, as it was, without the main effect on the department, being attached to it, 'there wonla.yipt be' a proper opportunity of , discussing, any ..points that, might arise. Mr G. W. ; Forbes- (Hufunui): "How: has. it been published?" *y' ' .' ■'■■• ■■■.''' .--Mr.^Coates:;"!^ unable; to' say;! It' is confidential until released by. Cabinet " ,Mr^pv;A.. v ,de ..la: Perrfelle/ (Awarua) asked-jrr.Coates when the British Railway Commission -.would y commence its investigations .;in New" . Zealand?- ,and .it was. the; Government's intention: to await,the Commission's findings .befor.6 considering the question of concessions on- railway freights iahcl fares. ■ ■ -llie. Minister, replied that the Government need not ■ necessarily '" await' the Commission,^;findings ■before ; deciding what |t would do in regard to freights ftnd^res: .He suggested "that Mi\yde la. ;l em-elle should exorcise as much patcXaA' Possible until the I^ailways btatement. canio, down, bc6auseJ'it min-ht possibly : convex . the- information Mr do lavlerrello, required. .t'Frpinl-'semi-pi'i-vate .sources,-and, correspondence with tie 'Commission, he'had learned that they hoped, to be able to complete their investigations-;, hi .Australia by/the end pi last month, .but. from; what'he T had! noUcod. 1,1 the Press, the Commission' had been, delayed. for longer than :had been .anticipated., „-■■/■. ;. -V..-- ,--^ ■...?•■•.-. -Mr. R. P. Hudson (Motuelvi) xlvew the' attention of the Minister of Customs ■to the fact 'that, the; Home'; Government Jiad been, asked to impose a protective duty-on hops lro m Americii and Continental countries, and asked what the: position was .in'uegsn-d to safeguarding the interests of New. Zealand. ' The Minister (tlie Hon; w! DownL Stewart) said, it was unlikely, in view of the general; policy of the Home Government that; they. would impose .such a duty. :It was very seldom that-hops were exported from New i Zealand -. in very large quantities/to. Great Britain, although last year a' substantial ainonnl, was; .shipped. Ho would make inquiry as-to whether there was any prospect of the duty-being extended against colon-ial-grown;: hops; and,: if. so, 'ho.'twould", make, representations witlr'a view. to protecting New Zealand hjip-growers. : ' .. ■ -y.;: .(Left Sitting:) ,'. ;' .■-'.."