STATE BANK

New Zealand Herald, Volume 81, Issue 25053, 17 November 1944, Page 7

STATE BANK

LABOUR, PARTY PLAN BUSINESS MEN'S OPPOSITION Criticism of the proposal of the Labour Party conference that the Government should acquire the pri-vately-owned shares in the Bank of New Zealand was expressed by the Auckland Chamber of Commerce yesterday. A resolution was carried strongly deprecating any suggestion that the State should compulsorily acquire these shares. The resolution was moved by Mr H. J. Lichtenstein, who said the matter had aroused considerable interest in the commercial community. The reasons lor the chamber's opposition, which were embodied in the resolution, were: (1) A Stale-owned Bank of New Zealand could not give to the public a more efficient banking service than it has been able to do for many years past as a private trading bank; and (2) a compulsory sale to the State of the Bank of New Zealand shares by private shareholders would seriously disturb investors, both large and small, in other important private financial trading corporations. Referring to the fact that all Mr Nash had said on the subject really amounted to arguments in favour of the bank not becoming State-owned, the president, Mr F. G. Baskett, said that personally he could not see what the Government would achieve by purchasing the shares. The Government already controlled exchange, interest rates, currency and the bank itself lhrojigh a majority on the directorate, while the State got 14s ljd in the pound of all profits made. Mr Baskett added that to purchase the shares would mean a large capital expenditure by the Government at a time when conditions were disturbed and the future uncertain. The matter could not have been raised at a more inappropriate time, and if carried

through should only be done by the direct vote of the people. Mr Baskett felt that if the issue were put to the country the people would decide against it. "The Government will not gain anything except please the party members who want the bank taken over," said Mr N. B. Spencer. The Government's satisfaction with the present administration of the bank was shown by the fact that the Government had not exercised its full powers in appointments to the directorate. "I think the pleasing of the rank and file of the party is the crux of the whole matter," remarked Mr Baskett. FALSE STATEMENT RUSE TO ENTER WHARF Charged with making a false stfitement with intent to deceive SeniorSergeant Southworth, by lalsely stating that he was the third engineer of an overseas ship, Leo Reginald Gornall, wool classer, aged 31 (Mr Aekins), pleaded guilty before Mr J. Morling, S.M.. yesterday. Senior-Sergeant,, Sparks said accused and an American sailor approached the gates of Prince's Wharf the previous afternoon and tried to gain admittance. The American was entitled to enter, but accused was refused permission to pass. Accused then went to the police station and asked for a pass, representing to Senior-Sergeant Southworth that he was the third officer of an overseas ship. Inquiries disclosed this statement to be untrue, and accused was arrested. Counsel said accused had been drinking whisky with the American sailor all day, and his recollection of what he had said was hazy, lie had no ulterior motive in endeavouring 1o enter the wharf. "Accused set out deliberately to defy the restrictions, which were imposed for a very good and definite reason," said the magistrate. "I. believe he had all his wits about him and fully realised what lie was doing." He was sentenced to one week's imprisonment.