LABOR AND DANKS

Evening Star, Issue 19386, 21 October 1926, Page 3

LABOR AND DANKS

ADDRESS BY MR HASH ‘The Need of Labor Organisation ’ was the advertised title of the address t;iveu by Mr W. Nash (secretary of the New Zealand Labor Party) at the Trades Jlall hast evening, but the (speaker dealt mostly with tho banking system, with special reference to the Hank of New Zealand. Mr Nash contended that tho Labor Party was the only organisation in tho dominion that could effectively combat what ho described as the “robbery of the people.” Mr A. Morrison (president Otago Labor Representation Committee) was in the chair. Mr Nash dealt with a number of Bills that had been passed during the last session of Parliament. One of these, the Family Allowance Bill, ho pointed out, provided for the payment of 2s weekly for each child whore the mother's income was less than £4 per week. Thus it was recognised .that tho State had a responsibility to the weaker mom hors of tho community. Tho speaker referred to tho Town Planning Bill and tho Hutt Valley Housing Bill, all of which, h© said, had admitted important principles that had been advocated by tho Labor Party at tho last elections, “ As long as tho Government will pass Bills like these wo will support it,” he added. Mr Nash dealt at some length with the amendment to tho Workers’ Compensation Act, which, ho said, was not satisfactory, owing to what ho termed tho “robbery” by tho insurance offices. Tho Labor _ Party would not bo satisfied until the injured worker received his wages in full during tho time he was laid aside. “Concentration and monopoly are essential for an efficient banking system,” stated Mr Nash in dealing with tho banking system. “Wo consider that no body, of men should have such power as they have more influence over credit than anyone else.” The banking monopoly was absolutely complete, and in view of this efficient government was impossible. What could ho done was exemplified by tho record of the Commonwealth Bank, which was still making from one million to ono million and a-half pounds profits yearly, though tho bank’s power to do good had been limited owing to tho actions of antiLabor Governments. In thirteen years profits amounting to £12,000,000 bad been made. ■ ! 'fracing tho history of tho Bank ol New Zealand, tho speaker said that the aetottßding tninji about tho bank was

Unit when it was losing money in ilie early •’nineties the bank was nevertheless able to pay dividends. Tho Government first gave a loan of £2,000,000, and later on £500,000, and guaranteed tho bank’s debentures. At ono time it could nob have paid 7d in the £. Tho Government had controlled tho operations of the bank since IS9G, as the Government appointed four out of tho six directors. Tho whole nl tho ordinary shareholders in tho Bank of New Zealand since 1895, had invested £•1.250,000, ami had received in dividends £.1,702,211, roughly £452,000 more than they had paid for their shares. These .shares wore worth £1 1,(325,001) on the Stock Exchange, and thus (ho shareholders had made a profit of a little over £12,000,000. In Australia those profits would have gone to tho community as a whole. _ The profits exceeded the salaries paid by two to ono, and ho considered that there was something wrong with an institution that did such a thine as that. The Government could have organised tho hank for the people instead of having allowed it to bo run for the private shareholders. Tho Rural Credits Bill came in for some criticism from Mr Nash, who opined that'tho scheme would not help tho dairy fanner at all. Ho contended that the Stale Advances Department had increased tho rent of every house by 5s per week by raising the rate of interest on advances. Had the Government ibo will to do it, tho department could have continued to advance money at 5 per cent. Unfortunately tho "Government did not have tho will, and ho did not think it would as long as the present Ministers were at the head of it. In conclusion, ho expressed the hope that the. various Labor organisations would do what tho banks had done—become organised.