BANKING CONTROL

New Zealand Herald, Volume 81, Issue 25051, 15 November 1944, Page 6

BANKING CONTROL

TREND IN AUSTEALIA

COMMENT ON CIRCULAR (Special Australian Correspondent) (Eecd. 7.30 p.m.) SYDNEY, Nov. 14' "The banking system is excellent, but it is wrongly controlled," said the Assistant-Federal Treasurer, Mr H. P. Lazzarini, today. "I would not alter any part of the banking machinery, but I would make banks operate for the good of the nation and not for the profit of private enterprise." Mr Lazzarini, who is the author of the recent controversial pamphlet, "The How of Post-war Planning," was commenting on a circular issued by the National Bank of Australasia warning its clients of the possible effects of new banking legislation. The circular states that the permanent political regimentation of money in banks would mean permanent regimentation of business and of the individual. Under the strain of war, the banks had willingly accepted Government control and they did not advocate immediate removal of all controls after the war.

Permanent Government control, however, would mean that banks would always have to invest or manage moneys deposited with them in a way dictated by the Government and its officials, who had no direct responsibility to individual depositors. Mr L. T. McConnan, chief manager of the National Bank of Australasia, said today that persistent press reports, emphasised by Ministerial statements, had impelled his bank to issue a straight-forward statement and he understood some of the other banks were acting similarly. In all, more than 750,000 circulars will be sent by trading banks to their clients, directing attention to indications of early legislation to provide for the permanent control of trading banks by the Commonwealth Government.