FARMERS AND FINANCE.

Matamata Record, Volume XVI, Issue 1442, 17 July 1933, Page 5

FARMERS AND FINANCE.

CONTROL OF CURRENCY.

Central Bank Opposed.

Monetary Inquiry Uurged. l

A considerable part of the business at the annual conference of the Dominion Farmers’ Union was devoted to discussion of the problems H£sihe Dominion’s financial and currency problems (states the Wellington Evening Post).

The conferonce expressed itself as very definitely opposed to this proposed establishment of a central bank, and urged that the whole question of Dominion currency should be made the subject of inquiry by a Select Committee of the House, Representative of all parties.

An Auckland Remit.

The following remit was brought forward from the Auckland branch:

“ That this meeting protests against Government bringing down legislation to set up a central bank and that although the Central Reserve Bank Bill has been temporarily postponed by the Government, this conference considers that extreme vigilance should be exercised and every constitutional means adopted to prevent the subjugation of New Zealand’s monetary system by interests not directly under the control of and answerable to Parliament.”

In moving the Captain H. M. Rushworth, M.P., said that there .were two features of the Bill which required very careful consideration. ,The first was that it proposed to confer a monopoly right upon a private institution to control the New Zealand monetary system, and the second was the proposed transfer of the New Zealand monetary system from King and Parliament to those who happened at the time to control sterling. The intention was that the Bill should be proceeded with at the next session as part if the Government’s major policy. He would oppose the Bill to the limits of his power.

Mr. Poison’s Support.

The president (Mr. W. J. Poison, M.P.) seconded the remit and said that he had expressed himself as against the Bill on several occasions, and he would oppose it in the House. The conference should make it perfectly clear that while it thought

there should be some controlling au-

- thority to handle finance and curL rency that controlling authority’s first duty should be service to the country and not service to any section of the community. The Bill was Sir Otto Niemeyer’s Bill, and proposed to allow New Zealand to handle her own affairs during the period of troubles, but that as soon as smooth waters were reached things should be handed over to the monetary interests. It was a proposal to which the conference could not subscribe, and he hoped that the xemit would be carried unanimously. The vote was unanimous.

Internal Monetary System.

Mr. J. A. McLeavey (Manawatu) Introduced the following remit:

H That in the opinion of this conference the time has arrived when the Government be asked to bring about a controlled internal monetary system.”

He suggested for the consideration of delegates a scheme for the creation of credit by the Government of £10,000,000, to be lent at 1 per cent, to farmers and businessmen who were in a sound position in 1929. As repayments were made the notes should be destroyed. The first year’s interest would amount to £IOO,OOO, and the cost of administration should not exceed £25,000, leaving £75,000 for distribution as considered best.

Mr. McLeavey said it was essential that some scheme should be devised for carrying honourable and reliable farmers and business men along for the next year or so. Opposition was inevitable, for some would wish to profit from the failure of others. The scheme was unorthodox, but in the face of present conditions unorthodox methods might be necessary to save the position. The Government had made no attempt to bring about any method of control. The conference would probably not support his scheme, but a measure of control was essential. Mr. L. H. Best (Shannon) seconded the remit, contending that the lack of policy must i lead to further decline. .. The remit was carried on a show -of ’hands.

Inquiry Advocated.

A further remit on the same subject was moved by Mr. K. J. Holyoake, M.P. (Nelson): —

“ That the Government institute an inquiry presided over by a Supreme Court Judge into the present monetary system and all possible alternatives to the end that the Government may take such action as may be necessary to cause the monetary system to fit the legitimate requirements of the national organisations.”

There were two widely diverging views on the subject of control of the monetary system, said Mr. Holyoake, one maintaining that control would succeed, the other that monetary juggling could do no good notwithstanding that that was being done to-day and the remit therefore proposed a fully independent form of inquiry.

Captain Rushworth’s Amendment.

Captain Rushworth moved an amendment that the inquiry should be made by a Parliamentary Committee. Only by an open inquiry by a properly constituted tribunal could the real truth be arrived at.

Mr. W. J. Poison, M.P., supported the amendment, contending that a full and open inquiry offered the only means whereby a solution could be hoped for. Representations had been made over a period of a year for a full inquiry, said Mr. W. Boyd (Matangi).' Why should such an inquiry be burked ? The public were beginning to realise that there was something that should not be, and it was only by united action that the Government could be prevailed upon to institute such an inquiry. Matamata Speaker’s Comments. Mr. D. B. Higgins (Matamata) said that Mr. Coates had replied to representations from his branch that only Auckland desired such an inquiry, and that such an inquiry would not be worth the expense. If it was shown clearly that there was a united demand that answer could no longer be given. The World Economic Conference had apparently failed in world affairs, said Mr. J. D. Hall (Canterbury), but New Zealand finance offered particular problems which must he inquired into. The amendment, that a Select Committee of the House should be set up to inquire, was carried unanimously. “ People Were Thinking.” The president said that there were several other remits from various branches showing to what a degree the people of New Zealand were thinking about the problem. Though the grounds were much the same there were differing points in the remits put forward, and he suggested that the best plan would be to refer the several remits to a small committee to embody in a suitable remit. After some discussion this was agreed to, the committee to consist of Captain Rushworth, and Messrs. Best and Little.