Reserve Bank Bill

Hawke's Bay Tribune, Volume XXVI, Issue 111, 23 April 1936, Page 6

Reserve Bank Bill

(To the Editor). Sir.—There is a remarkable similarity between the declared policy and methods of the British Labour Party and our present Government’s first step to implement its policy. "The Problems of a Socialistic Government," by Sir Stafford Cripps and others and also the writings of Mr G. D. H. Cole very candidly outline what steps should be taken to realise tho objectives laid down by the 1932 Conference. These objects are to eliminats private ownership from leading industries and services, and to bring ini j operation a National Plan for economic development. The keystone of the arch is the eon trol of banking—Mr Cole says this is essential to stop a removal of capital abroad, to give the Government control of payment for imports and to enable it to divert available supplies of money to finance the Government’s economic plan. "With the banks in our control,” says Mr Cole, "we can afford to take over productive industries at our leisure.’' It is significant that Sir Stafford Cripps says that control of banking must be taken by "a Bill containing emergency powers, which must bo pressed through all its stages on tho first day.” This legislation must gno power to dismiss directors, power to control imports and the Minister of Finance is to direct tho banks' police When the New Zealand Reserve Bank Bill is examined, it is disquieting to see how closely it follows Sir Stafford Cripps’s proposal and to note the man ner in which it was forced through the Parliament. Mr Savage has assured us that there is no need for alarm and 1 sincerely hope this is correct, but it is not reassuring to note that his first act ie te pass legislation defined as essential for implementing the whole Socialist objective. Under the powers in this Bill the Minister of Finance can direct the bank’s policy; he can if ho wishes dismiss directors, and he can control imports, and finally the legislation virtually confers powers which if used could control investment, so that all available money could be diverted to carry out the Government’s plans. There are many, who anxiously await tho rest of the Government’s policy, feeling thnt there must have been some reason for its assumption of such drastic emergency powers—advocated by the British Labour Party for the specific purpose of replacing private enterprise by State Control.—l am, etc. AJAX. April 19, 1936.