CONTROL OF BANK

New Zealand Herald, Volume LXXV, Issue 23160, 5 October 1938, Page 17

CONTROL OF BANK

ME. SCHRAMM'S OPINJON "STATE SHOULD TAKE OVER" WHOLE-HEARTED ADVOCACY His attitude to State control of the Bank of New Zealand was given by Mr. F. W. Schramm, Labour M.P. for Auckland East, when speaking to electors in the Cheltenham kiosk last night. The hall was filled with over 100 people and an overflow audience,listened to the address through loud-speakers outside. Although the candidate was-fairly frequently heckled by a few individuals, his supporters were in a clear majority and at the end of . the meeting he was accorded a vote pi thanks and confidence in him and his party, this being carried against dissenting cries from a relatively small group. , . "Officers of the Bank of New Zealand throughout the country would be well satisfied," said Mr. Schramm, "when the times comes when we take over the Bank of New Zealand in its entirety. Is there any reason why we should not take it over ? We own one-third of - the scrip and have a majority on thg directorate. Is there any reason why we should not take control of it?" .

Saved by State

Mr. Schramm said the. Bank of New Zealand already owed its very existence to the State, for the Liberal-Labour' Government under Richard John Seddon had saved it from a crash. Indeed, said Mr. Schramm,, the politicians of the past had not seen to the complete welfare of the country or they would have taken it over altogether?' K ■ "Since we saved it from utter ruin," said Mr. Schramm, "the time has. cOme when we can take over complete control of the bank in the interests of the country and of the employees of the bank throughout the country." An Interjector:, Good old Lang. Mr. Schramm disagreed. The position was totally different, 'he said. In New Zealand the Government could do as it liked with its own affairs and if it took control and ownership of anything in New Zealand there was no outside authority which could stop it. Position of Reserve Bank ~

Mr. Schramm had said earlier that the Reserve Bank had lost nothing in efficiency when'it .was taken over by the Government. Shares issued at £5 each were taken over from the holders at the market price of £6 5s ruling at the time of the general election—could anybody say that was unfair when the shareholders had done nothing to earn the extra £1 ss? The staff were the ones who had done that and they had run the bank "just as well after the Government took it oyer. • '■

In answer to a question toward the end of the meeting.Mr. Schramm said the Government had not decided about the Bank of New Zealand or any other banks. He had. given his personal opinion and everybody knew what , his opinion was. He-said the State should have control of it. "Lock, Stock and Barrel"

The speaker did not think it was necessary to touch the other banks at all. No other banks had been discussed by tho Government. However,, he did not want to mislead anybody. He personally stood for taking over the Bank of New Zealand—lock, stock and barrel. In answer to an earlier question about the dismissal of the four. colonels Mr. Schrarhm said they had committed a breach of the New Zealand Regulations, under which they served, by 'entering politics. Colonel Spragg had been a member of the National - Party and in 1936 he had attended the party's conference. At the last election he had been chairman" at a meeting for Mr. Schramm's opponent. That was not keeping out or politics. WORK FOR DISTRICT ENDEAVOURS OF MEMBERS • . t MR. ENDEAN'S ACHIEVEMENT Results of the respective efforts of Messrs. W. P. Endean and A. G. Osborne, 3\f.P.'s, to have placed upon I the Statute Book the Cornwall Park Trustees Rating Exemption Bill, were compared by Mr. I. J. ' Goldstine, Mayor pf Oiie Tree Hill, who presided at Mr. Endean's meeting at Green Lane on Monday night. He explained that the two members each represented part of the borough, which was divided by . the boundary of the electorates. The bill, which aimed at giving exemption from rates so that men could be employed with the money saved to do necessary work in Cornwall Park, was 1 entrusted to Mr. Osborne, Mr. Goldstine said." A considerable time elapsed without anything being done, however, and the borough council was at a loss to understand this.' Ultimately it placed the bill in Mr. Endean's hands/ and within a fortnight it had been passed. In this and in other respects, the borough had cause to appreciate Mr. Endean's services in Parliament, Mr. Goldstine added.