Greymouth Evening Star. FRIDAY, AUGUST 13, 1948. Socialist Move Defeated

Greymouth Evening Star, 13 August 1948, Page 4

Greymouth Evening Star. FRIDAY, AUGUST 13, 1948. Socialist Move Defeated

IT would he unrealistic to assume, not to say politically naive, that, because the Australian Tligh Court has declared Mr Chifley’s bank nationalisation decision to be unconstitutional and invalid, the Socialist Government at Canberra will not attempt to find other means of exercising the control that nationalisation would give them. It has embarked on a policy of Socialist control; it will not be easily baulked. Australia is a young country which has developed its agricultural, pastoral, and industrial riches primarily through the courageous investment of private capital, and the free play of enterprise. Not once in his speeches defending his bank nationalisation plan when it was first introduced could the Prime Minister, Mr Chifley, quote an instance of an important industry being retarded in its development by the so-called machinations of private finance. He did not question cither the efficiency, the solvency, or the integrity of the private trading banks which have served Australia well. They are independent of Government ownership, and that alone is sufficient for Mr Chifley lo seek their extinction.

Trading banks in Australia, as in most oilier civilised countries, no longer have absolute independence. In Australia, if rhe Government deems a change of policy desirable, the Commonwealth Bank has full power to bring this about. It has the power to curb the lending activity of the trading banks by locking up any increase in their cash resources. This, along with other existing instruments of central bank control, would be more than sufficient to check any unhealthy credit expansion. The Canberra Socialists, therefore, have no argument in this regard.

The nationalisation plan is in keeping with the Socialistic doctrine of State domination. Under a hanking system controlled by the State there would inevitably be a tendency lor proposals to bo examined in the light of Government aims and policy. Production, industry, and commerce would be compelled to seek State assistance in the provision of capital. The State would thus be in a position to exorcise a virtual dictatorship over industry. By nationalising the financial resources of individual enterprise, the State would have gone a long way towards socialising all ..enterprise. In other words, nationalisation of the banks really amounts io a round-about w;!V —. in( ] not too round-about at that —of nationalising industry as a whole. A mandate for vitally important legislation can be obtained either by referendum or by reference of the issue to a general election. The Canberra Socialists took neither of these courses. At the last general election, there was no mention of the bank nationalisation plan. It is true that it is not the practice to refer every individual piece of legislation to the electors. But the creation of a' banking monopole is not an ordinary piece of legislation; it involves the most fundamental change since the Federation of Australia. The Canberra Socialists’ plan was, plainly, to use the powers of Parliament lo destroy in advance Ihe effectiveness of subsequent electoral verdicts. In other words, a large measure of Socialism was to be foisted on the people. They were not to have a say on the question whether they desired the bank's to be destroyed or not. The High Court has spoken in Hie protection of their rights.