CHANGE SOUGHT

Evening Post, Volume CXVI, Issue 96, 20 October 1933, Page 15

CHANGE SOUGHT

BANK OF NEW ZEALAND

LABOUR MEMBER'S BILL

APPOINTMENT OF DIRECTORS

The Bank of New Zealand Amendment Bill, which provides for tho reorganisation of the directorate of the bank, was road a first time in the House of Representatives yesterday afternoon. Mr. P. Langstone (Labour, 'Waimariiio) is in change of the measure. The debate on the introduction of the Bill was continued after "The Post" went to press. Mr. H. G. It. Mason (Labour, Auckland Suburbs) said that banks "broke" when their credit was gone, and when their customers could no longer pay their overdrafts. Mr. B. A. Wright (Government, Wellington Suburbs): Why can't the banks create more credit? Mr. Mason: They' cannot create more - credit, because the credit is not their. credit; it's the people's credit.. '.When the customers 1 credit is gone, their credit is gone. They would create more credit if the ctcdit. they used was their own credit. Mr. B. Semple (Labour, Wellington Bast) said that the Bill made an effort to give back to the people the legitimate right to create wealth and consume that wealth. The credit of the nation was created by the people and exploited by th« banks. Tho credit facilities of a nation should always remain part of a people's rights through the Government.

Mr. W. E. Barnard (Labour, Napier) said that the intention of the Bill was that the Bank of New Zealand should be run in the interests of the people of New Zealand and not in the interests of the few fortunate shareholders. The time would come when the.mass of the people would insist that the principles of the Bill be given effect to. Mr. J. Hargest (Government, Invercargill) pointed out that there was any amount of credit in America between 1925-1929 and yet the credit had fallen. That would happen unless the banking system was prudently administered. He was opposed to the Bill. The Leader of the Opposition »(Mt. ■M. J. Savage) said that the principle, contained in the Bill was also in the Reserve Bank of New Zealand Bill. Mr. Hargest: One's a Central Boserve Bank and the other's acommercial bank.

Mr. Savage said that Mr. Langsjtone was only dealing with one bank, whereas the Central Beservo Bank waa dealing with all the banks. Those who controlled the credit of the country and at the same time controlled certain industries must have an advantage over their competitors. JVIr. W. A. Veitch (Government, Wanganui) said that there should bo established within the country a system of management of currency that would keep prices in a reasonable distance of the needs of the people and keep them in a stable condition. "I am glad there is another convert to a managed currency," said Mr. J. A. Lee (Labour, Grey Lynn). Mr. Veitch: You are a convert to me. I preached it before the hon. gentleman came hern. Mr. Lee contrasted Mr. Veitch's attitude with his previous attitudes, asscribing to him the character of a political acrobat. Mr. W. A* Bodkiu (Government, Central Otago) said that the Government -' would be justified in adopting the measure only if it could be shown that the directors had failed. The Bill was introduced ,and read a first time.;