GRAVE BLUNDER

Evening Post, Volume CXXI, Issue 83, 7 April 1936, Page 16

GRAVE BLUNDER

EX-MINISTER'S VIEW

An assurance was given the Government by the former Minister of Justice, the Hon. J. G. Cobbe (Nationalist, Orua), that no member of the Opposition dreamt of reflecting upon the integrity and undoubted ability of the Minister of Finance. At the same time Mr. Cobbe said that the Government had made a grave blunder in endeavouring to force the Reserve Bank of New Zealand Amendment Bill through the House in haste. There would be repercussions that had not been considered by the Government. All he could do was to protest in the most vigorous way. It was one of the most important measures that had ever been introduced into the Parliament of the Dominion. The Bill should have gone to the Finance Committee and evidence should have been given by the banks, insurance companies, chambers of commerce, farmers' unions, and business people. It appeared that the Government was afraid to face a Committee. "DANGEROUS ROAD OF SOCIALISM." "The Bill is a forced step along the dangerous road of socialism," declared Mr. Cobbe amidst Government laughter. It meant inflation of currency and would lead to a higher cost of living. He could not understand the Government advocating something that would increase the cost of living. If ! the Bank were nationalised it would mean that it would be a plank for discussion on every political platform and would make for party rivalry. It was the intention of the Government to issue whatever notes were required to finance guaranteed prices. The issue of excessive notes would result in depreciation of the currency and its dependent evils. The banks had carried out their duties satisfactorily in the past. The proposed legislation would lead to loss of confidence in the

Dominion. People would be afraid to invest because they would not know what was to happen in the future.

"The Government Is embarking on a dark and dangerous road," concluded Mr. Cobße. "I believe it has taken the road to inflation," he added. "It has been a disastrous road wherever adopted."