CONTROLLED BY STATE

Evening Post, Volume CXIV, Issue 103, 28 October 1932, Page 9

CONTROLLED BY STATE

CENTRAL RESERVE BANK

MR. ' MCKEEN'S ADVOCACY

The hope that if a central reserve bank was sot up in New Zealand it would Ac controlled by the State was expressed by Mr. R. McKeen (Labour, Wellington South) in the House of Representatives to-day.

Mr. MeKeen said it was realised that the old banking system was no longer suitable to the cconomie situation. The present financial system had absolutely broken down and the need for a change was becoming increasingly apparent. Financial policies should bo controlled by Parliament, which should see to it that the banking system was used for tho benefit of the country as a whole. A central bank was essential, but it should be a State organisation. He hoped the bank would not bo established on the lines suggested by Sir Otto ■Niemeyer, who lmd come to New Zealand in the interests of the Bank of England and big financial interests. Central banking was not' a new idea, but had germinated after the war.

Mr. MeKeen said it was apparent that discussions had^ taken place at Ottawa regarding future immigration, and it seemed to him that there would shortly be a move to finance immigration schemes. The Government was holding back information /which should be in the possession of members of Parliament. He was not opposed to immigration, but they should see to it that their own people were catered for first. " ,New Zealand could accommodate millions more people if a progressive policy of industrial development were adopted. . Great Britain would not be able to ..continue to absorb the products of the primary industries in New Zealand,-and it was essential that new markets should be found. He held-the view that there was a wonderful market for New Zealand in the East. Japan wanted the goods which New Zealand could supply. Professor Bolshaw had submitted a report in 1929 sharing the great possibilities of trade in the East, but for some reason or other the report was never published in New Zealand. It was published in Australia, however, and as a result Australian businessmen had seized the opportunity of/ extending their trade. Instead of New Zealand looking for markets in the East the Dominion had provided a market for the East. The balance of trade was right against New Zealand, and th© people of the Dominion were keeping Japanese workmen in employment while New Ze.aland workmen could n3t find employment. . ■ ,