TRADING BANKS

Evening Post, Volume CXXVI, Issue 77, 28 September 1938, Page 21

TRADING BANKS

GOVERNMENT'S AIM

If the Labour Government were returned to power it would take over the trading banks as it had taken over the Reserve Bank, Mr. R. A. Wright, Independent candidate, stated when addressing Wellington West electors at _ Wadestown last night Government' members believed the banks earned large profits, he said, but many shareholders were not getting 5 per cent, on their investments.

"The present Government took over the Reserve Bank, and bought out'the investors who had shares in it," Mr. Wright said. "It is now entirely controlled by the Government, and the directors simply carry out the Government's policy. There is, however, a number of members of Parliament supporting the Government who contend that all the commercial banks should be owned and controlled by the Government. Whether these members constitute a majority of the party is not known, but according to rumour they do, and if the Government is returned at the election all the trading banks will share the fate of the Reserve Bank. Such action will be in accord with the declared policy of socialisation which is a cardinal feature of the Socialist Party. According to this party, the banks are rolling in wealth, and if taken over will be a gold mine for the Government. The banks are popularly supposed to be able to issue paper money at will, and in this way make huge profits. As a matter of fact, the shareholder who purchased his shares 'since 1925 is not receiving s,per cent, on his investment, but some Government supporters think this is too much. The bank shareholder, according to them, should not be allowed to collect any dividend, however small. Hence the desire to exterminate him."