THE RESERVE BANK ACT

New Zealand Herald, Volume LXXIII, Issue 22399, 21 April 1936, Page 13

THE RESERVE BANK ACT

Sir, —Mr. Savage has assured us that wo have nothing to fear. I wish I could feel confident that this is true, but it is not reassuring to note how closely his party seems to be following the plans laid down by the Labour Party leaders in England. Labour leaders in that country have written copiously on the methods to be adopted if and when they gain office. Two main objectives are to eliminate private ownership from the leading industries and to bring into operation a national plan for economic development. It is declared that "to realise these objectives a complete control of banking and financial resources is at once necessary." This will enable them to stop removal of capital, will give the Government control over payments for imports and power to divert available supplies of money to finance the Government's economic plan. Sir Stafford Cripps, Mr. G. D. H. Cole and others consider that control of banking is the keystone; having got this the rest will bo easy. They say that a bill containing emergency powers must be pressed through all its stages on the first day that Parliament meets. Among these must be power to control imports and power to dismiss directors who refuse to carry out the policy as interpreted by the Minister of Finance. If you road the writing of the above leaders the remarkable similarity of the Government's action to the methods laid down is very disquieting, because the object of the British Labour policy is frankly to establish complete State ownership and to control all investments. If these powers are exercised no one will be free to invest excopt in those activities desired by the Government. It is to be hoped that Mr. Savage is sincere in his assurances, but in the face of the candid objectives for which control of banking is desired the drastic emergency powers granted to the Minister of Finance by this bill are disquieting. The sooner the Government declares the rest of its policy the better; judging by its first step there is some cause for alarm. Ajax.