BANK OF N.Z.

Evening Post, Volume CXXXVIII, Issue 127, 25 November 1944, Page 8

BANK OF N.Z.

STATE AS OWNER

SEEN AS SOCIALIST MOVE

O.C. PALMERSTON N.. This Day. In view of the present measure of Government control over both the Reserve Bank and the Bank of New Zealand, and of the services rendered to industry, trade, and the community by the Bank of New Zealand, and its adaptation to national needs developed during the 83 years of its existence, the Chambers of Commerce are strongly of the opinion that any extension of State ownership of the Bank of New Zealand is unnecessary and would seriously impair its.position and usefulness and would prove detrimental to the best interests of the Dominion. This was embodied in a resolution carried by the Associated Conference at Palmerston North following discussion of the Labour Conference proposal that the Government should take over the bank. In moving the motion, Professor A. H. Tocker said that the Government had already complete ownership of the Reserve Bank, which was the central Bank of the Dominion; and was empowered pretty effectively to control a large portion of the operations . of the trading banks. The Reserve Bank had considerable control over the Bank of New Zealand. The Government was also already part owner of the Bank of New Zealand, and appointed four of the six directors. He pointed out that control was not the , end but only the means to an end, and the end should be the general welfare of tne Dominion. If it was proposed to make changes beneficial to the welfare of New: Zealand then they should be made. . But ;the proposal was only a change in ownership, and that gave business men no reason to support it. A relief delegation, sent to Europe after the .last war by the late President Hoover, . of U.S.A.; had discovered that the greatest disruption was not caused by devastation or loss of millions of lives, but "by the breakdown of the channels of trade and exchange, and banking played a most essential part in that. The Bank of New Zealand was established in 1861 and had grown up <with the Dominion and had become 'an essential part of the life of the :Dominion. It did about half the total ; banking of the country. The Domin.ion had seen the Government control • the Reserve Bank. The.first effect was . credit expansion and the breakdown of jthe ordinary free exchange relations ion overseas markets. The effect of :the taking over of the Bank of New j Zealand would, be ,a. major surgical (Operation on the economic nervous {system of New Zealand, and the pro(posal had been made . without any - consideration of its impli{cations or defects. ; "STEP IN SOCIALISATION." . Mr. J. T. Martin (Wellington) said jthat the Bank of New Zealand was j highly organised and efficiently manj aged. It was an institution the counLtry had every reason to be proud of and it had responded remarkably well to the; ever-growing requirements of (the country. It was the duty of the I Chambers-, to safeguard the rights and j privileges of the old-established institutions and watch carefully that their j usefulness was not interfered with by men of no financial experience and • actuated solely by a desire to make it ■ [ serve ■ doctrinal ideas. , "We are not so blind as not to see i their intentions," said Mr. Martin. '"The main idea behind the proposal Us-to create freedom from debt, and jthe acquisition of the bank is the first (step in the socialisation of the means " t of-production, distribution, and ex- ! change. One of the leaders in the ■move stated.-that the operation of the /bank by Labour would bring about ■the greatest of freedoms—freedom from debt. Tfcey believed they could obtain that objective by the socialisa- ' tioh of the means of production, distribution, and exchange. But how," =asked Mr. Martin^ "can the acquisition of'- this bank liquidate the national debt? How it. can even contribute to £ it is beyond comprehension." :

1 "The president; Mr. Stronach Patersoh; ; asked that there, be no discussion, so that the meeting of the bank's 'shareholders in Wellington next week might not be embarrassed.