SOCIALIST MOVE DEFEATED

Greymouth Evening Star, 13 August 1948, Page 6

SOCIALIST MOVE DEFEATED

“The Australian High Court’s decision vindicates the trading banks and the States who were the plaintiffs in'the action,” says the London Financial Times in a leading article on the Australian Banking Act. “Their combination indicates how fundamental and far-reaching are the issues involved. Realisation of the fact that finance and banking are the foundation upon which the modern industrial structure is erected is responsible both for the Government’s attempt to intensify its control of the banks and for the Opposition’s vehement reaction to the move.

“Nationalisation of the banks would contain the threat of subordinating every form of industrial activity _ to political expediency operating through one all-compelling channel. The temptation to differentiate between a private venture and a governmental agency might be strong, and it would be difficult to prove favouritism. After all, the businessman knows his banker and the banker knows the businessman’s needs. “The Government’s plan was in part the outcome of resentment against the action of the banks, during the depression of the ’thirties. Banking experience has been enlarged since that time, but it is obvious that the Commonwealth Government meant to sacrifice the lessons of banking experience to its own theories for cushioning the country against the impact of external forces. The individual, in a society which is still very individualist, still demands that he be left free to guide his business in detail according to his own chofce.”

“Not only the great majority of the Australian people, but also many of the Labour Party’s most faithful supporters will feel relieved by the High Court’s rejection of the Banking Act,” says the Sydney Sun. “The Federal Government’s attempt to push the nationalisation of banking into active law was made in the fact of overwhelming public opposition. What Gallup Poll Revealed

“A. Gallup Poll published in the Sun last January showed that in a cross-section of Australian bpinion two of every three people were firmly against the Government proposals. In other words, the great majority of the people of this country do not want extreme Socialism and distrust any further regimentation of their way of life. What caused the greatest misgiving was the fact that a Government monopoly of banking would have been hailed with delight by the Communist Party as a perfect prelude to totalitarian control.”

The Sydney Daily Telegraph says: “If the Commonwealth could establish a banking monopoly it would achieve dominating power over all industry and finance and life in this continent. The judgment has two important means. First, it compels the Commonwealth and the Labour Party to return to the elector for permission to carry out a programme of socialisation. Before the Labour Party can advance this line of its policy it must persuade a majority of the voters and a majority of the States to amend the Constitution to remove the. hindrance of Section 92, which forbids any restraint of trade and commerce between the States.

“Second, the judgment reaffirms the vital principle that the Constitution

s merely an instrument of the Federation and not the overlord, of the States.” Celebrations By Banks Australian bank officials said that fears of unemployment had now passed and that the banks “were back in business again with a longterm charter.” The newly-formed Bankers’ Club in Sydney was the scene of festivities last night. The general managers of most banks were in Sydney for the day, those in charge of Melbourne banks coming specially for the occasion. In many staid banking premises kegs of beer appeared after closing time. In Melbourne telephoned congratulations jammed the lines of bank managers. One display of feeling reported by a Sydney newspaper was that of an elderly Salvation Army officer in uniform, who broke through the crowd outside the courthouse, clasped his hands aloft, and shouted: “Hallelujah. Five to one. Our money’s safe. Hallelyjah!” In the streets news stands were dressed with posters reading, “Bank Bill Decision,” but the newsboys were yelling out: “Results of lottery!” The staffs of trading banks, legal offices and members of the Stock Exchange cheered and clapped the verdict.