OUR ECONOMIC DILEMMA

New Zealand Times, Volume XLIX, Issue 11254, 5 July 1922, Page 2

OUR ECONOMIC DILEMMA

New Zealand is in most urgent need of sufficient money to meot pressing demands for advances to settlers: for workers homes, for public and local body works and for private industrial and commercial enterprises, which are absolutely paralysed through inability to finance. Our existing sources of supply cannot find much of the money required, at any price; nor any part of it at reasonably economic rates. • This dilemma can therefore only be ended by opening up a fresh source of supply, and Parliament will absolutely fail to prove its fitness to control the economic life of this Dominion if it does not immediately take steps to remove the financial depression that now palls our industrial life. A simple method of national co-operative banking is all that is required to end the prevailing depression, and which will continue until Parliament enacts: That a national co-operative bank bo established, the proprietary to consist of the Government, the holders of fixed deposits and the holders of current accounts in such bank. The directors to consist of nine members elected in equal numbers by each of the above three proprietary interests The profits, after pn\mont of Government tax on notes issued and interests upon fixed deposits, to be annually distributed by way of dividend upon' the' daily average credit of each current acount. National legal tender notes to be issued, for use only, within New Zealanl, on the security of firstclass land, mercantile and industrial assets. Intor«fntionnl credits to be cstnb-'« lished on the security of merchantable goods exported for sale in any part of the world. The maximum rate of interest to be 5 per cent, for advances made by this bank. (Published by arrangement.)