Political Control of Banking

Hawke's Bay Tribune, Volume XXV, Issue 159, 21 June 1935, Page 6

Political Control of Banking

(To the Editor.) Sir, —Mr Arch. Lowe says we are wrong in saying that the bocialUt movement to control banking is band on the fact that the banks are independent of political control— Mr Lowe cays that it is based upon the fact that British banking is efficient. In this opinion he conflicts with V* Snowden who said that British banking was pre-eminent in the world for soundness. He also seems to overlook the fact that no shareholder or depositor in any British or New Zealand bank hats lost a penny owing to bank failure, whereas failures in America ran into thousands and the loss to depositors and shareholders into many millions. Sir Stafford Cripps—and other leaders openly state that they want to control the banks co as to make use of their funds for political purposes— we prefer this official opinion to Mr Arch. Lowe’s. Mr Lowe’s letter is based upon tjbe assumption that wo wrote about *“a movement aiming at an alteration in our banking and currency system.*’ Our letter did not deal with that in any way at all, but merely with • political party’s objective to bring banking under political control, co as to take from thoce who have savings or resources the power to invest as tliev wish.—Yours, etc. N.Z. WELFARE LEAGUE. June 18, 1935.