MONETARY POLICY

Evening Star, Issue 22896, 2 March 1938, Page 10

MONETARY POLICY

IS A CHANGE PENDING ? VARIOUS SPECULATIONS [From Our Parliamentary Bevortee.] WELLINGTON, March 3. Is an immediate change to be made in the Government’s financial policy p This is a question which is being freely asked as the result of statements made by Mr J. A. Lee, Parliamentary Undersecretary, at Auckland last week, when he discussed banking control. Mr Lee, was reported as saying': “ Personally,! nothing short of the complete ownership and contro: ol the banking system is good enough for me. The people will be safeguarded as they have been under Mr Savage. We own and control the Post Office Savings Bank. Has that spelt disaster? ” It is suggested that Mr Lee may have been merely recalling the undertaking on which the Labour Party went to the country in 1935. It was laid down then as part of the Party’s credit and currency policy that it would assume immediate control of the entire banking system, with the State as the solo authority for the issue of credit and currency. On the other hand, there is a good deal of speculation as to whether some deeper meaning is contained in Mr Lee’s remarks.

The opinion is held by more than a few that he was expressing the impatience of a section of the Parliamentary Labour Party at the delay in giving full effect to the policy placed before the electors. Force is lent to the inference that the Government has not completed its plans for control of credit and currency by the statement made fay the Prime Minister at Tauherenikau on Saturday when he said it was time the people’s representatives took upon themselves the power to govern money. He also made it clear that a few private banking corporations would not be allowed to stand between the people and the produce they provide and that the Government had not gone half the journey.