HOUSE OF REPRESENTATIVES.

Northern Advocate, 3 September 1913, Page 2

HOUSE OF REPRESENTATIVES.

YESTERDAY'S SITTING

DISCUSSION ON BANKS

WELLINGTON, Sept. Z

The House met at 2..'J0 p.m

On the motion to consider the Committee's report on the Commercial Bank of Australia (Ltd.) Bill, Mr Ell (Christchurch South) raised the question of whether provision was made for payment of gold for bank notes in any other centre than Well j ington. He pointed out the unfairness of such a position if it obtained. The other banks, he said, paid gold on demand at the four centres.

The Hon. J. Allen (Minister of Finance) said provision was made in the Bill for payment of notes at the office of issue or at Wellington. The provisions of the Bill safeguarded the interests of the people of the country.

The Hon. Sir Joseph Ward said that every bank operating in New Zealand made their notes payable in Wellington. They were always honoured, however, wherever presented. The centralisation of bullion was deliberately done to prevent any institution running out of gold at a time of a crisis, which happily, he added, was not possible in this country.

Mr Malcolm (Clutha) informed the House that the committee which had examined the Bill took -every precaution to carefully consider' its provisions

Mr Hindmarsh (Wellington South) advocated the adoption of the Canadian banking system here. There each bank was compelled to keep on hand a certain amount of gold. All the bullion held against the bank's notes was handed over to the State, which gave a receipt for it. The State thereby got the use of the gold for nothing.

The Hon. J. Millar (Dunedin West) advocated the taking over by the State of the whole note issue and control of gold. The banks, he urged, should be compelled to buy gold from the State instead of from private people. Mr T. M. Wilford (Hut.t) said v he had prepared a clause providing for practically free trade in banking as long as the institution's assets and reserves were sufficient. Mr W. P. Massey (Prime Minister) agreed with Mr Wilford ! s sentiments with regard to free trade, but knew of no restriction's to prevent any bank coining to Parliament and getting authority to operate here. Mr Myers (Auckland West) said any corporation was entitled to trade in this Dominion under the Companies' Act. At the end of the last June quarter the Commercial Bank had a note circulation of .£1,714,109, and its bullion coin, etc., totalled £5,----016,557. The Bill was read a first tim«. CIVIL SERVICE REPORT. The reports of the Lands Department, Labour Department and Public Service Commissioner were laid on the table. j Replying to Mr Hanan, Mr Massey said an afternoon would be set apart for the discussion of the Public Service report within the next month.

Sir Joseph Ward said dissatisfaction permeated the whole o»f ' the Public Service owing to the opera-

tious of the Public Service Act. If the system were good why, he asked, did it not apply to the railways, which in a tew years from now would control over fifty thousand people. One of two things would happen in the near future:- either the iwhole of the railways would hu.ve to be brought under the system, or else the whole of the departments at present under the Commissioners would have to be removed from their control.

Mr MacDoiiald (Bay of Plenty) contended that the Government could not show where any saving had been effected under the Commission. He objected to an irresponsible board redressing the grievances of the people of the country.

Mr Massey, replying, said the Opposition would never have a chance of removing the Act from the Statute Book. The people were quite satisfied with it, and would never allow the state of influence and graft of a few years ago to again come into the Public Service. It had beeu asked why the railways and police and teachers had , not come under the Act. Who, he asked, would suggest that teachers should sacrifice their independence. If anyone advocated that before the electors he would never see the inside of Parliament. As to the police, in no country in the world were the police under any. head, but the- Crown In connection with the railways, he contended that in Australia the civil servants were under the control of boards, but in no cases were railways included. That branch of the service was always under -the control. of Commissioners. The report was one of the most valuable and satisfactory ever brought before the Parliament of the country. The House adjourned at 5.30 p.m.