BANKING MONOPOLY

Greymouth Evening Star, 14 May 1927, Page 2

BANKING MONOPOLY

MR HOLLAND’S QUERIES.

(Per Press Association.)

TIMARU, May 13.

Mr H. E. Holland, Leader of the Labour Party, addressed a well-attend-ed meeting here to-night, when he spoke on lines similar to his North Island addresses.

With reference to the decision of the Associated Banks to raise their rate of interest to 7 per cent, Mr Holland predicted that this would precipitate a crisis in the Dominion. Such an increase was only possible through the existence in the Dominion of a private banking monopoly which completely dominated the position. It was unsatisfactory that the Bank of New Zealand, in which the Government was interested, was to be found functioning as an effective part of this banking monopoly, which was loading its guns against the local bodies and the private borrowers. It should b.e explained why the interest charges were being raised and why credit was being made dearer at the very time when cheap money was more needed in this country than ever before, and at the time when the Bank of England was reducing its interest rate. An explanation was also needed as to why this was being done at a time when increases in the bank dividends were being indica,ted • The Labour Party, he said, proposed to transfer from the private banking monopoly the power to act as a central bank, and to concentrate full power in a State Bank, which would have the sole right of note issue, and which would provide machinery for cheap credits for public undertakings and both primary and secondary production.

Mr Holland was accorded a hearty vote of thanks.