Greymouth Evening Star. AND BRUNNERTON ADVOCATE. SATURDAY, SEPTEMBER 15, 1934. MONETARY COMMISSION.

Greymouth Evening Star, 15 September 1934, Page 6

Greymouth Evening Star. AND BRUNNERTON ADVOCATE. SATURDAY, SEPTEMBER 15, 1934. MONETARY COMMISSION.

,yOri wore • ,, seems to sum up Hie report of the Monetary Commission, tabled in the House of Representatives, yesterday by the Finance .Minister (Mr. Coates). The members may have hoped to convert the nation, if necessary, but they did not succeed in converting each other. The majority report is signed by the six Reform Parliamentarians on Ihe Commission, and it is not, therefore, surprising that, generally, their recommendations support the present Government’s policy. Air. W. Downie Stewart, whose financial knowledge, probably equals that of all. his fellowcommissioners, dissents from the majority report, and repeats the faith that is within him, as ex- i pressed in the House and elsewhere on various occasions. The three ' Labour Members on the commission 1 and Capt. Rnshworth, an Indepen- j dent who nowadays votes with the ( Opposition, condemn the majority report, adhering to their known < opinions on the subject. Thus the J official report had but a majority of c

one on the commission, and the nation has some ground for feeling disappointed with the outcome of what was an. important and somewhat expensive enquiry. Few subjects are more involved than national, finance and laymen need to he greatly daring to enter the discussion on what is the best system for national welfare. New Zealand is suffering from a trouble that is world-wide, and the greatest authorities on monetary systems hesitate to be dogmatic, frankly declaring that no clear way out of the maze is yet in their sight. Others less qualified claim to have easy solutions. In theory, it is fairly easy to lay down plans for financial recovery, but in practice most of the schemes outlined would meet fatal obstacles. Like many who are their own lawyers, or doctors, they have fools for clients who with little experience or study of monetary affairs, prescribe their own cure for the depression and its ill effects.

A feature of the Commission’s official report is the attack made on the trading Banks, more State control being recommended, yet as good Reformers, they must know that their Party has been the main opponent to the establishment of a State trading bank. The interest rates.charged by the Banks are declared to be excessive, but the ! Banks did not have altogether a free hand in this matter. Cheaper money has been followed by a reduction in interest rates, and. this decrease will probably increase in the near future. There will be more support for the suggestion that charges for keeping accounts and internal exchange should be reduced. Total abolition would not be altogether unwarranted. As for the suggestion that overdraft rates should be kept at certain maximums, in many instances that might add to the reluctance of the Banks to grant such facilities to applicants. The Banks are in business primarily to make profits for their shareholders, and if they have succeeded too well, —from the community viewpoint,—in this direction, it must also be remembered that their strength comes from such returns, and that had the Banks not been strong during the past years of economic crisis, disaster must have arisen. The

Commission’s majority report supports the maintenance of the high exchange rate, the amalgamation of State lending departments, and other measures promising easier finance for farmers. Air. Downie Stewart censures his fellow Reformers for being too Socialistic, whereas the Labour section of the Commission blames them for not going far enough in this direction. Familiar Labour gibes about the Bank of England control of Dominion finance are repeated, as are the proposals for making money of a special kind for certain classes of the community, on the something-for-nothing principle. All will wish it were possible, but meanwhile, may be excused for

having serious doubts. The Commission discussed the Douglas credit proposals as not worthy of serious consideration, an attitude that may have been influenced by the refusal of Alajor Douglas to give evidence that mattered. The full reports of the Commission are worth perusal, and no doubt need arise as ,to the genuine desire of the members to find a cure for national financial weaknesses, but first impressions following the presentation of the result of their labours, do not inspire wholehearted gratification.