BANK CONTROL

New Zealand Herald, Volume 82, Issue 25216, 31 May 1945, Page 6

BANK CONTROL

AUSTRALIAN COMMENT GRAVE RISKS FACED The controls to be exercised over the trading banks in Australia in , peacetime are described in London as being more complete than those imposed by the Nazi Party in Germany before the war, according to the Australasian Insurance and Banking Record. Their effect is summed up as confiscation of tlie equity of the trading banks without any compensation. "Those comments are severe, but they are fullv justified and should be heeded by a country which prides itself on its fair dealing," states the Record. "This unfair treatment of the banks and their shareholders is objectionable enough, but the financial dictatorship which the Treasurer of the day is to assume over the whole community is the rock on which the legislation will eventually be wrecked."

"Caucus the Dictator" The Record then quotes what the Sydney Bulletin recently described as "A great Australian tragedy," which has a counterpart in New Zealand in the Government's plan to buy out the private shareholders of the Bank of New Zealand. The risks of gross economic disorder arising out of Commonwealth legislation are emphasised by the Bulletin, which says: "If the policy of Labour currency theorists is deliberately pursued, or if the typical Labour avoidance of financial realities is to be our lot during times of economic difficulty, then, with the. Commonwealth Bank board swept away, and caucus the dictator of our credit policy, Australia must prepare for credit inflation, industrial breakdown, unemployment and depreciation of currency, bank balances, lile policies, loan holdings and fixed incomes. We must also pre pa re for a disruption of our external trade.

Destroying Whole Foundation "Tlii' tinnier ahead is indeed so great that a lull and emphatic warning should he given to Australians without delay. It is not a matter of expressing a theory or a passing fear; the utter incapacity of this Government to deal with any problem where politics as well as government are involved has left too definite a pattern behind to allow any doubts about how future problems will be tackled. "The Australian Labour Party, protected by the institutions of its country for so long, docs not realise that in attacking those institutions to the point of destruction it is destroying the whole foundation of our economic and social stability. It has taken the smooth working of any industrial or financial function for granted, and believes that it can meddle in the expert work of others only with advantage to itself. In its envies, its greeds, its fantastic ambitions and its irresponsibility, it has reached a stage where, if allowed to continue along its road of wishful thinking and shirking of obligations, it will bring this democracy to the brink oi ruin."

INTEREST-FREE LOANS MONEY FOR WAR PURPOSES REPAYMENT ARRANGEMENTS (P.A.) WELLINGTON, Wednesday The Minister of Finance, Mr Nash, made reference to many patriotic citizens who, in the early days of the war. had made interest-free loans to the Government for war purposes. He said these people had been registered as holders of New Zealand Government stock which was recorded in the books of the Reserve Bank. With the termination of the war in Europe, the Government felt that some announcement should be made regarding the maturity and repayment of these loans. "Many people made loans for the duration of the war or for the duration and stipulated periods thereafter, such as three months, six months and one year, and the Government has decided that, where a lender so desires, the period of the duration of the war may be regarded as having ended with the termination of the war in Europe, and the stipulated period thereafter may be taken as commencing from that date." said Mr Nash. "Therefore, repayment will be made on various dates commencing from the conclusion of tli£ war in Europe, but it will be necessary for the lender in every ca.se to make written application to the Reserve Bank. Where no application is made in the meantime, loans will be allowed to run until the termination of the war with Japan and stipulated periods thereafter." Mr Nash added that, where any hardship was beinc caused by the continuation of. a loan, application could be made to the Reserve Bank forthwith, irrespective of the maturity date, and sympathetic consideration would be given The Government felt, said the Minister, that, with the termination of the war in Europe, most sympathetic consideration should be accorded those who so generously came forward in the darkest days and offered their money free of interest.

OFFICIAL RETIRES HARBOUR BOARD FOREMAN The foreman of works of the Auckland Harbour Board. Mr E. W. Baty, who is retiring after 36 years' service, was the guest of members of the board after a meeting. Mr Batv joined the board in 1909 and was made foreman of works in 1923. Since then he has been in charge of many of the board's major works and, although past the retiring age. volunteered early in the war to remain at'work to assist with the board's defence works. Mr Baty was congratulated by the chairman, Mr .T. H. Frater. and members of the hoard and staff oh his excellent service.

Mr Baty is a former president of the Auckland Orphans' Club and the Balmoral Bowling Club. He will be succeeded as foreman by Mr F. F. Tackaberry,