RESERVE BANK BILL

Hawera Star, Volume LIII, 2 November 1933, Page 6

RESERVE BANK BILL

PASSING of short title

LABOUR MEMBERS’ ATTACK.

NUMEROUS AMENDMENTS LOST

(By Telegrapa—Press Association.)

WEILLINGTO N, Nov. 1. The House of Representatives 'went into committee on the Reserve Bank of New Zealand Bill and the short title was passed after a comparatively short discussion.

To the clause providing for the establishment- of the Reserve Bank Mr J. A. Lee (Lab., Grey Lynn) moved an amendment designed to eliminate share capital. The Leader of the Opposition (Mr M. J. Savage) said the amendment meant that they desired to establish a purely State institution.

Mr A. S: Richards (Lab., Roskill) said a State bank Was desirable in order to give the .people facilities which were required at little or no cost. Mr W. A. Veiteh (Go., Wanganui) said it was undesirable that banking should be administered by the Government, although Parliament by its laWs rightly controlled hanking within the country. Mr Savage said the Labour members did not suggest the bank should be operated from the Cabinet room. All they asked was that it should he a State: institution. The amendment was defeated by 43 votes, to 23, and the clause was passed. Messrs Atmore, Rushworth, Samuel and Stallworthy joined the Labour members in supporting Mr Lee’s amendment. Air Rl. McKeen (Lab., Wellington South) moved an amendment to eliminate the necessity for the concurrence of the shareholders in alterations to the rules of the bank. He said he could not understand why the Government insisted on having shareholders. He did not see what it hoped to gam by adopting such a course, because the shareholders would only be in the concern for what they eouid get out of it. " The Rt. Hon. G. W. Forbes said it was essential that the bank should have the confidence of the people, and that was the reason for having private shareholders. It was probable that in time it would be possible to establish confidence in a State bank, hut they could not afford to wait for that confidence. They could not hope to secure confidence at once unless there were private shareholders. ‘"Mr C. Carr (Lab., Timaru) said there would he a minimum of 200 shareholders n‘i the bank. Could it be said those 200 people were going to inspire confidence in the rest of the community of over a million and a half. The amendment was defeated by 41 votes to 27. . "'Another amendment designed to eliminate share capital was moved by Mr W- E. Barnard when the next clause Was considered. It was defeated by 44 votes to 25. Mr R. A, Wright sought to add a provision that no shares should be allotted to any person other than a British subject ordinarily resident m New Zealand. He said this amendment would ensure there would be no Undesirable shareholders and at the same time it should inflict no. hardship on the bank.

Mr A. E. Ansell (Co., Chalmers) suggested that no shares should be allotted to other than New Zealand citizens and that no voting right should be retained by persons absent from the Dominion for more than 12 months. Mr C. H. Clinkard (Co., Rotorua) said he 'hoped the Minister would accept the amendment as there was a strong feeling that the bank should be solely a New Zealand institution. Mr Coates said he knew there was a feeling that it was desirable that the shareholding should be kept as strictly as possible to New Zealand shareholders. He • undertook to consider the clause with a view to meeting the wishes of members. He- would see whether a new claitse could he drafted covering the position generally. Air Wright did not press his amendment and the clause was adopted. Mr H. G. R. Mason (Lab., Auckland Suburbs) moved an amendment seeking to insert a provision that the primary duty of the hank should he to establish a monetary system based on. goods and services and to maintain control o\ or circulation and credit to that end, and that the bank notes issued by it expressed in terms of wholesale prices of New Zealand produced commodities should remain stable. The amendment was defeated by 43 to 26. . The House rose at 12.30, at which stage twelve clauses had been passed.