PARLIAMENT

New Zealand Herald, Volume LXX, Issue 21639, 3 November 1933, Page 11

PARLIAMENT

reserve bank ALL CLAUSES PASSED fiESEKVATION MADE amendment PROMISED MORE STATE CONTROL' rpY TELEC.It ATH —SPECIAL REPORTER] WELLINGTON. Thursday The business of Parliament was taken this afternoon with the knowledge that n ' ns intended to finish with the K ; scrve Bank Bill before the House rnso On the previous day only 1 rla uses out of the 52 in the bill had boon disposed of by the House m Committee, and members made up thenminds to another sitting well past midnight although it was known that an arrangement liarl been reached that t hero was to be no obstructive delay. Perhaps the most topical clause in the whole bill, that providing that the profits obtained from the gold reserves he credited to the Public Account, gave n?0 to a brisk debate m the afternoon. Air K -V- Wright (Independent—Wellington' Suburbs) submitted as an amendment tho corresponding clause in the previous-bill, in which there is a provision for.setting up a tribunal to decide the ownership of the gold. Mr. Stewart's Speech This led the Hon. W. Downie Stewart t 0 give an interesting account of the origin of that clause, but. although he "stated the Minister of Finance had put up a very strong case and had a strong body of authoritative opinion behind tho clause in the present bill, Mr. Stewart was one of four who supported Mr. Wright in the division. The vote of to 5 was significant as showing that Parliament is almost unanimous in holding that the Statejs entitled to tho disputed gold profits. Mr. Stewart's first contribution to the debate since his return from Canada was made a little earlier, when he supported the proposal that tho Reserve Bank should have the right to purchase shares in the Bank for International Settlements. Mr. Walter Nash (Labour —Hutt) also made his first speech this sent;ion, drawing attention to the large amount of had been exported at prd£t by the New Zealand banks. "Several Opposition amendments were again avowedly directed toward getting control of the Reserve Bank into the hands of the people. The Government continued to hold a_ large majority, varying from 14 to 51 on the various divisions that were taken. Subsequent Officials An important development in the Committee debate took place at a late hour when the House returned by unanimous consent to re-discuss the clause providing for the appointment of the governor and deputy-governor of the bank. The Minister of Finance, Mr. Coates, put forward an amendment to provide that these officers should be recommended to the Governor-General, not by a meeting of shareholders as in the bill, but by the board of directors, j la the subsequent discussion. State control of the Reserve Bank was j strongly advocated and the bill was ultimately passed in its entirety on the understanding that the Minister will amend it in the direction indicated before it reaches tho Legislative Council. There was a strong demand that these two officers should be appointed by the State. Their appointment is really the key to the control of tho bank, for of the remaining seven directors who have voting power, four are elected by the shareholders and three are appointed by the State. If the pernor and deputy-governor are made State appointees, or practically so, the State will virtually have control of the conduct of the bank. Ihe proposed amendment will, of course, apply only after the first appointment of the two officers, which is to be made bv the btate. The Committee stages were then completed, and the House proceeded to the third reading speeches. INTERNATIONAL BANK functions explained Matter oe buying shares [BY TELEGRAPH— PRESS ASSOCIATION] AV ELLINGT ON, Thursday An explanation of tho functions of the Bank for International Settlements was^ given by the Prime Minister, .Air. i'orbes, in the House to-day, when the question of the power of "the Reserve ank to purchase its shares was being discussed. Air. Forbes sai-1 the Bank for International Settlements had been set up to enable effect t'o be given to the financial arrangements of the League of Nations, fhis hank's purpose was to provide finance in instances where the League of Nations was satisfied that financial assistance should be given to an\ nation having the support of the League in any difficulty or war that might arise. It was also an institution for tho purpose of collecting information which made available to banks which became shareholders. It would be for the directors of the Reserve Bank to decide, whether the advantages were such 33 to make it advisable for the bank to take shares in the Hank for International Settlements. The decision was - f, ft entirely in the directors' bands whether they should accept any liability that would be incurred by taking shares in the international institution. Mr. lorbes said the Bank for International Settlements was not roncernorl with any question of currency. The internal monetary policy of the Dominion or of the Reserve Bank would not ho affected in any way. REPLY TO FARMERS' PROTEST ADEQUATE TIM K ALLOW I'D [from 01* It OWN CO It It KS I'ONDENt] AVI lANO Alt EI, Thursday Tim Prime .Minister. Rt. lion. G. W. orjes, has replied as follows to a pro,est trf "'i the evrufivo of the Whantray 1 sl, h-ptjoyinciiil branch of tiio R'uik'Tjdl ' r ' Reserve c ' lt 1) ls not considered that, the Roll "k Rdl is being pushed through ' ouse of Representatives, as sughnf.iV *' u ' m,, asure has already been e the .co'intty il)H ] Parliament for ii'rmJ 110 ''" 1 ' 1 ' 00 * f ur( h"r inquiry into h °n«tarv and cui-rency matters." legislative council TEI.I.GH a I'll PRESS association] WELLINGTON. Thursday fhis'ift s ' a tive Council assembled Jiess'tn f rROOn < ' JI| t as there was no busiJUntil cevt m \v°V l!l f Counci l adjourned "-al Wednesday,