Grey River Argus and Blackball News SATURDAY, MAY 6, 1922. STATE BANKING.

Grey River Argus, 6 May 1922, Page 4

Grey River Argus and Blackball News

SATURDAY, MAY 6, 1922. STATE BANKING.

Delivered every mo. ning In Gr< >utt R ~v Hckitika, Dobson, Waltaend, TayU. alle, Ngahcre. Blackball, Nelson Creek. Brunner, Te Kuigha ionian-, Poen—, Inchbonnie. Pafara, Ruru, Kaunaia. Kotulc- Muana, Aratika. Bunanga. DunolF.e, Cobden. Baxters. Kokiri. Ahaura, Ikaniatua, Sthlwater. Wauna, Reefton, Ross. Ruatapua, Mananui, H/tri Han. Waiho Gorge, Weheka, Rewanui, Otira, Inangahua Junction, Westport. Waimangaroa, Denniston, Granity. Millerton. Ngakawax Hectoc, Seddouville, Cape Fouiwind. aud Karamea.

The fact that the Prime Minister should be publishing his views on the Question of State banking is a sign of the times. Probably he knows as well as anybody that a State Bank must come into existence sooner or later in this country. Mr Massey is now reported to have expressed himself in favour of the principle of a. State bank. He has, according to a telegram in another column,. informed

a correspondent that he is disposed to view with favour any State banking business under exclusive Government control. Apparently it is possible the telegram misrepresents Mr Massey, because his references to the Commonwealth State Bank, suggest that he is really hostile to State banking. While admitting that in a decade the Commonwealth State Bank lias earned a profit of £3,500,000, Mr Massey says it is not earning any revenue. Surely that £3,500,000 is an asset? The Prime Minister suggests a comparison between the Commonwealth Bank and the Bank of New Zealand, ignoring the fact that the later has had a start of a quarter of a century, but can he say the Bank of New Zealand lias earned for the State in 10 years the sum of £3,500,000? So far as the State’s share in Bank of New Zealand profits go, to quote them is to advocate State banking, because the State’s share is the direct result of the State partownership. If the State owned the whole of the shares, it would be so much the better off Then in regard to taxation, Mr Massey tries to make a point by saying the Commonwealth Bank pays practically none, whilst the Bank of New Zealand paid over £.',00,000 last year. That only shows the profits of the bank were large. Mr Massey is simply making a special plea for capitalistic banking practices. He

contrasts the amount of business the Bank of New Zealand does with private traders and others as against the lesser amount of such business done by the Commonwealth Bank; but let him compare the relative increases in such business as between the two institutions, and he will sec that in another decade, the Commonwealth State Bank will reverse the order. It is a comparatively young institution, whoso phenomenal success alone has prompted Mr Massey’s comparison, with the much older semi-private New Zealand institution. Is it not a fact that that the business of State Departments and local bodies goes a. long way to promote the general success of the Bank of New Zealand? Take away such business, and what would be the position? The prosperity of banking instituitons generally, even when trade is stagnant, shows the State cannot lose by embarking on banking. Indeed, if it declared the whole business a public monopoly, it is certain the public interest would vastly benefit. Eventually this will be practically demonstrated.