BANK OF N.Z

Gisborne Times, Volume LXXIII, Issue 12080, 20 October 1933, Page 4

BANK OF N.Z

PROPOSED- R I'fiißiUTiON ON director* -would not be connected WITH BUSINESS FIRMS LABOR. BILLPASSES FIRST HEADING. (Press Association). WELLINGTON. Oct. 19 In introducing the Banjc of New Zealand Amendment BUI, 3lr. Langstone CL), said that if the GovernW( ,„t would take I, P ,b - Bill ‘ here would ko no n«d for a central bank anv other of the schemes that bad been sorted. The -tie op” of mono,, in Now. Zoo and *«/»,■ ,» definitely due to the pol.cy of the Banl: of New Zealand, which control! /d half the banking business in theDominion. He said it *«nig in principle that directors of the Bank of New Zealand should be associate! in big commercial concerns. Tile main provision of the Bill v.a« that directors appointed to the Board of the Bank, of New Zealand shoTa not be connected with any other hank' ing institution, commercial concern or joint stock company. 31r. Wright (G), said he thought the directors of the hank should b e the best men possible, and he believed the present directors filled the hill. He thought it would he preferable for the Government to take over the Bank of New Zealand to e.-.tsb-lish a central bank. The Rev. Clyde Carr (L). said the whole object of the Bill was to make the Bank of New Zealand a State Bank-

Mr. Semple (L) said the Bill represented an effort to give hack t 0 the people the legitimate righ tto create wealth and consume that wealth. The credit facilities of the country should always remain part of the people s rights through the Government. 2,1 r. Barnard (L), said th e intention of the Bill was that the Bank of New Zealand should he run in the interests of the people of New Zealand, and not in the interests of a few fortunate shareholders. The time would come when the mass of the people would insist that effect be given to the principles of the measure.

3lr. Hargest (C) Pointed out that there had been any amount of credit in the United States between 1925 and 1929, and yet that country’s credit had fallen. That would happen in New Zealand unless the banking system was prudently administered. He opposed the Bill. The Leader of the Opposition said that the principle contained in "he measure was included in the Reserve Bank of New Zealand Bill. He contended that people who controlled the credit of the country, ana were at the same time interested in industry, must have an advantage over competitors . Mr. Veitch said there should be established within the Dominion a system of management of currency that would keen prices within reasonable distance of the needs of tee people, and keep them in a stable condition. • 3fr. Bodkin (C) said the Government could be justified in adopting the measure only if it could be shown that tne directors had failed in their duty. The Bill was road a first time