SERIES OF AMENDMENTS.

Manawatu Standard, Volume LIII, Issue 288, 2 November 1933, Page 9

SERIES OF AMENDMENTS.

REJECTED BY GOOD MARGINS

TWELVE CLAUSES PASSED. Per Press Association. WELLINGTON, Nov. 1. The House of Representatives went into Committee on the Reserve Bank of New Zealand Bill, this afternoon, 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 moved an amendment designed to eliminate the share capital.

Mr M. J. Savage (Leader of the Opposition) said the amendment meant that they desired to establish a purely State institution.

Mr A. S. Richards said a State Bank was desirable in order to give the people facilities which were required, at little or ho cost.

Mr W. A. Veitch said that it was undesirable that banking should be administered by the Government, although Parliament, by its laws, rightly controlled banking within the country- , Mr Savage said the Labour members did not suggest that the bank should be operated from the Cabinet room. All they asked was that it should be a State institution.

The amendment was defeated by 43 votes to 23 and the clause passed. Messrs Atmore, Rush worth, Samuel and Stallworthy joined the Labour members in supporting Mr Lee’s amendment.

Mr R. McKeen moved an amendment to eliminate the necessity for the concurrence of shareholders in alterations to the rules of the bank.

Supporting his amendment, Mr McKeen said he could not understand why the Government insisted on having shareholders. He did not see what it hoped to gain by adopting such a course, because the shareholders would only be in the concern for what they could get out of it. 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, but they could not afford to wait for that confidence. They could not hope to secure confidence at once unless there were private shareholders.

Rev. C. Carr said there would be a minimum of 200 shareholders in the bank. Could it be said that those 200 people were going to inspire confidence in the rest of the community —over 1,500,000?

The amendment was defeated hv 41 votes to 27.

Another amendment, designed to eliminate the share capital, was moved by Mr W. E. Barnard when the next clause was considered. It was defeated by 44 votes to 25. NATIONALITY OF SHAREHOLDERS.

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 in New Zealand. He said this amendment would ensure that there would be no undesirable shareholders and at the same time it should inflict no hardship on the bank.

Mr A. E. Ansell suggested that no shares be allotted to other than New Zealand citizens and that no voting

right should be retained by jiersons absent from the Dominion for more than 12 months. Mr C. H. Clmkard said he hoped the Minister would accept tlie amendment as there was a strong feeling that the bank should be a solely rvew Zealand institution.

Rt. Hon. J. G. Coates said he knew there was a feeling that it was desirable 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, and lie would see whether a new clause could be drafted covering the position generally. Mr IV right did not press his amendment, and the clause was adopted. Mr H. G. R. Mason moved an amendment seeking to insert a provision that the primary duty of the bank should be to establish a monetary system based on goods and services to maintain control over circulation and credit.

The amendment was defeated by 43 votes to 26 and the House rose at 0.30 a.m., at which stage 12 clauses had been passed.