Defends Changes In Banking System

Northern Advocate, 1 December 1944, Page 2

Defends Changes In Banking System

(2 p.m.) CANBERRA Thip Day,

Proposed changes in the present banking system would not be “detrimental to Australian public borrowers or depositors,” said the Acting-Prime Minister (Mr. Forde). There was absolutely no justification for the fea'rs which were being engendered by propaganda which was being distributed through the community by banks and other people for party political purposes.

Mr. Fordo added that he could not yet indicate the precise nature of the Government’s proposed legislation. The political correspondent of the Sydney “Daily Telegraph,” says that senior Ministers expect that the pro-: posed banking legislation will be considered by the Federal Cabinet early in the new year. Legislation is reported to be likely to be based on fom* main points: (1) Operation of the Commonwealth Bank to be removed from and made entirely independent of private banking interests. (2) Abolition of the Commonwealth Bank Board and the appointment of a governor, to be responsible to the Commonwealth Government. (3) The Commonwealth Bank to enter into vigorous competition with private banks in all avenues of banking business.

(4) A statutory provision that banking transactions of all public bodies be reserved for the Commonwealth Bank. It is expected, too. that legislation will provide for perpetuation of controls over private banks which the Government has exercised for the past three years as a war-time measure.