BANK OF NEW ZEALAND

Greymouth Evening Star, 9 November 1944, Page 8

BANK OF NEW ZEALAND

STATE ACQUISITION PROPOSAL

WELLINGTON, November 8

Regarded througKout the Labour movement as one of the cardinal points in the implementation of the party’s 1935 policy of complete monetary reform, a remit urging the Government to consider the promotion of a State trading bank by the immediate acquisition of the shares of the Bank of New Zealand now held by private persons was carried unanimously to-day by delegates to the annual conference of the New Zealand Labour Party. Scenes of. enthusiasm' marked the passing of the resolution, which was brought before the conference by Mr H. E. Combs, M.P., in the report of the finance and policy committee. The full text of the resolution, moved by Mr Combs and seconded by the Minister of Finance (Mr Nash) was:— “This conference recognising the advantages of commercial banking facilities for the purpose of (a) assisting and rehabilitating returning servicemen, and (b) the reconstruction and development of the Dominion, both now and in Hie immediate post-war years, urges the Government forthwith Io take steps to establish such facilities, and with this end in view to consider the promo-, tion of a State trading bank by the immediate acquisition of shares of the Bank of New Zealand, at present held by private persons. Prominent among those who took part in the debate was Mr Langstone, M.P., a keen exponent of monetary reform and the implementation of the 1935 policy, who was accorded a rousing reception.

The decision reverses the action taken at the last conference held 18 months ago, when, after an explanation by Mr Nash of banking currency, and the credit system, and the Cull and complete controls exercised by the Government, the conference affirmed with only a small number of dissentients that the purchase by the State of the Bank of New Zealand and/or other trading banks was at that stage unnecessary. At that conference Mr Langstone urged that lhe Bank of New Zealand should be lakcD over immediately by Hie Gov'■rnmeui. Mr Nash replied iba.l. Hie Government determined what credit should be issued, for what purpose it should be issued, and what interest rate should be charged. Trading banks co-operated with Government policy in determining that .all credit provided fitted in with the war effort of the Dominion. Mr Nash also explained then that the Bank of New Zeland was controlled by six directors, four of whom were appointed by the Government, and they did work in with the Government. It is understood that Mr Nash restated his attitude in the committee stage of this year’s .conference, but subsequently withdrew his opposition to the remit.

OTHER REMITS. WELLINGTON, November 8. The annual conference of the New Zealand Labour Party to-day passed a remit, “for the Government’s most favourable consideration,” that persons injured through being run down by motor vehicles should be entitled to compensation for accident. It was emphasised that Hie right should not be limited only to cases in which negligence could be proved.

It was decided to recommend, to the Government for prompt action a proposal that all fire, life, and accident insurance be investigated, with the object of effecting economies and reducing premiums. A special group of remits dealing with the Press was discussed. It was urged that all articles of a political nature and letters to editors should be signed by the authors, and that the Press should be compelled to grant a right of reply. The. conference also endorsed a remit asking that ’any privileges granted to the Press should be withdrawn.

During consideration of an education remit asking that teachers should be given a right of appeal against

non-appointment the Minister of Education (Mr. Mason) said that negotiations were in progress with teachers’ organisations to advise a convenient procedure to enable this to be done, The conference endorsed a remit that all text-books for schools should be issued free and congratulated the Government on the steps already taken in this connection.