"A WILD CAT SCHEME"

Evening Post, Volume CXVII, Issue 88, 14 April 1934, Page 16

"A WILD CAT SCHEME"

NATIONALISED BANKING

MOVEMENT IN AUSTRALIA

- An emphatic warning was given by the Assistant Treasurer and Minister of Local , Government in New South Wales (Mr.. Spooner) against the movement for nationalisation of banking and credit. This : proposal which Mr. Spooner described as ' "a wild cat scheme," he said was the ■ Labour Party's policy for the next Fede- ■ i-al- and ■ State elections. "This will be ' the-:biggest issue at the elections (he said) ■. because the political opportunists think the cry has a' popular appeal, and the , Socialist Party thinks there is an opportunity to capitalise the depression and gain control of the machinery of credit. '. The prospect of gaining control of Australia's money stores is so glittering that ' every effort will be made to mislead the ' public upon this crucial aspect of the ;. nation's affairs." ; NO GOOD OUT OF MONOPOLY. i Mr. • Spooner said that no good could come of Government monopoly ot banking, and credit,: because there were already ' in circulation moneys and credit which m- : dustry found it impossible to utilise to the ■full. The largest bank in Australia advertised regularly that it wanted to lend . its' funds, and could not find a sufficient outlet. ' Could any bad come of Government con- ' trol of banking and credit? He'instanced 1 failures of the State trawling industry, Btato timber-yards, and .many industries. Even the few State undertakings that had : eurvived caused dislocation and unemployment in legitimate industry by using the resources of the State to undermine legitimate industry i 1 . ■ : . It was plain, he said, that what was intended, when nationalisation ot banlcinK and credit was advocated, was pure inflation. The crazy creed of inflation was bein" taught insidiously to the public under high-sounding names and under plausible proposals. Its sponsors wanted to secure political control of banking, and something for nothing as long as it would last, having no regard tor the years of. distress that would follow, and the ' breakdown of industry and employment • that had resulted in every country that • lad attempted inflation. These people, it •they gained their way, would create an- • other depression deeper and more lasting . than the one through which Australia was (•mercinc. There had been one Lang de'pwssion" in New South Wales. Imagine another one with the banks and the credit system at'his disposal! A NONSENSICAL CHARGE.

. - Those who defended the private banking system/said Mr. Spooner, were charged by Labour with being "friends of the banks." Such a charge was nonsense, and resulted from poverty of argument. The banks were only the investing public using their massed resources for the benefit ot industry and development. Brisk trade »ud buoyant conditions were the only prospect for improved profits to the Banks. Was it in their interests to delay the process of recovery? During the > past ■year the banks earned 3 per cent, ontheir capital, plus reserves. The national isatiori of' banking and-credit, ..if .it .could be carried into effect, would be the'first step in the direction of the complete socialisation of. industry." "With one large State monopoly at its legislative disposal an unscrupulous Government could control the destinies .p£ all. industries. during a short, hectic career before-it broke down of its own weight and incompetence. , DANGER OF INFLATION. / "The greatest incentive to economical charges 'arid' low living costs is. the private competitive system of banks, manufacturers, and .traders," Mr. Spooner proceeded.' And, he added, the greatest'danger to the working'man of this country is inflation, and, consciously or unconsciously, this is the creed of all who advocate nationalisation of banking and credit.) "What is really intended by the proposals, for nationalisation of banking is the!pollticalisation of finance and industry, Such a system is certain to work its own. cure, because the public ' mind would- revolt a^ainst-all the abuses-that it would intro-duce,-and it would be short-lived. During n brief trial it would set; back' for. a '..long period Australia's industrial and, ' social development. ~,".-: • j "Those nre days for clear thinking and confidence. Australia has made a wonderful effort during the depression, and does not deserve to suffer experiments in wild-cat schemes. Many of those who preach the overthrow of the present system would deliberately 'Russiamse Australia under the cover of fair.words and false promises."