AVERT DEPRESSION

Gisborne Herald, Volume LXXIV, Issue 22484, 13 November 1947, Page 5

AVERT DEPRESSION

REASONS_FOR BILL CHIFLEY EXPLAINS SECOND READING PASSED (N.Z.P.A.—Reuter— Copyright.) CANBERRA, Nov. 12. The Commonwealth Government’s Bank Nationalisation Bill passed its second reading in the House of Representatives late last night, the voting being 40 to 27. The final speaker on the second reading was the Prime Minister, Mr. J; B. Chifley, who made the following main points: 1. The Government had no animosity against those who had been employed in private banks. There were men of very high capabilities associated with the private banks and he had a great deal of regard for the assistance they had giver, whenever the Government had called on them. 2. The private banks had intimated that their employees were asking them to do things irrespective of what their personal views might be in the matter. 3. Mr. Menzies had said that Sections 18 to 22 of the existing Banking Act were not challenged in the Melbourne City Council case, but the council’s statement of claim said that the whole of the Banking Act, 1945, was beyond the powers of the Commonwealth Parliament. 4. The reason for taxation concessions to banks voluntarily making an agreement with the Commonwealth was to place English shareholders, whose shares could not be compulsorily acquired ,on the same tax basis as Australian shareholders. 5. Private bank employees taken over would be fully protected and, if necessary, the Commonwealth Bank Act would be reviewed to provide for this. 6. The bill had been introduced by the Labour Party because of its love for humanity. Mr. Chifley also said that the Commonwealth Bank held seven of every 12 trading accounts in Australia. The Government had not thought of controlling some other section of industry through the banking legislation. It wanted the country to be able to use its financial and monetary policy to prevent another depression.