PARLIAMENT

Otago Daily Times, Issue 22099, 1 November 1933, Page 8

PARLIAMENT

YESTERDAY’S PROCEEDINGS HOUSE OF REPRESENTATIVES (Per United Press Association.) WELLINGTON, October SI. ■!Phe House of Representatives met at t . USO p.m. BILL TO BE INTRODUCED. Mr J. O’Brien (Westland) gave notice of his intention to introduce the Greymonth Borough Relief of Unemployment Validation Bill. CONDITIONS AT CHATHAM ' - ISLANDS. Mrs M'Combs (Lyttelton) asked what action the Government proxiosed to take concerning the need for relieving distress amongst sections of the population at the Chatham Islands. She said it had been pointed out by the Rev. Mr Barnett, who had' recently arrived from the Chatham Islands, that a number of people there were in a state of destitution so far as clothing, blankets and similar necessaries were concerned. The Prime Minister (Mr G. W. Forbes) said that as a result of inquiries he had been informed that the conditions in the islands as late as the end 'of last month were not so desperately bad as had been stated. The Minister of Health (Mr J. A. Young) would approach the North Canterbury Hospital Board, under whose jurisdiction the Chatham Islands came, to see whether it was in a position to render assistance.

MORTGAGORS’ RELIEF LBGISLA- , * TI6N.

Mr W. J. Poison (Stratford) asked the Minister of Justice (Mr J. G. Cobbe) whether at the earliest possible moment he would, relieve the poignant apprehension of the farming community by some definite announcement of ■ the Government’s intention in regard to an extension or amendment of the mortgagors’ ie-, lief legislation, thus giving farmers who had lost heart some hope for the future. Mr Cobbe said that the existing mortgagors’ relief legislation would expire on December 31, and it was the Government’s Intention to bring down provisions to extend the period of operation of the Act' Further machinery amendments to render the Act more effective wore at present under consideration. TEACHERS’ EXAMINATIONS.

Mr R. A. Wright (Wellington Suburbs) asked whether the Government was aware that a number of primary school teachers would be absent from schools attending university ’examinations, during November, and as i that was a critical month for the children owing to their annual examinations being in progress, whether the Government would temporarily appoint as substitutes some of the unemployed teachers. Mr Forbes said absence due to examination requirements was not essentially different from absence due to ill-health. When teachers were absent for only a day or two the headmaster could usually make arrangements for carrying on temporarily without extra assistance. If, however, so many of the staff were absent at one time, even if only for a few days, then the senior inspector might approve of relief provided he was satisfied the school could not otherwise be conducted with reasonable efficiency.

MARKETING OF DAIRY PRODUCE. Mr A. J. Murdoch (Marsden) asked whether the Government would withhold its approval of the Dairy Board’s marketing proposals until they had been submitted to the dairy companies throughout New Zealand. The Minister of Agriculture (Mr O. E. Macmillan) said that the marketing proposals were definitely A matter for the Dairy Board, and he understood the board intended to handle them very carefully and- not attempt to act with undue haste. In view, however, of the representations that had been made of late regarding the proposals he proposed to take an early opportunity of looking into the question further. V WOMAN’S DEATH IN HOSPITAL. Mr E; F. Healy (Wairau) asked the Minister of Health ,(Mr J. A. Young) whether he had read a’ report that a. married woman had died in the Kaikoura Hospital as the result of an error on the part, of one of-the sisters, and what steps the department was taking to prevent a recurrence. Mr Young said he had seen the newspaper reports on the matter, but he was not prepared to make a statement at .the present/ time as the coroner had not yet given his verdict and the matter was sub judice. CLOTHING FOR UNEMPLOYED WORKERS.

Mr W. E. Parry (Auckland Central) asked whether ’the Government would make available a sum of money to provide clothing for unemployed workers before the Christmas season. Mr Forbes said it would not be possible to comply with the request without jeopardising the Unemployment Fund. RESERVE BANK BILL.

Urgency was accorded the debate on the second reading of the Reserve Bank of New Zealand Bill. Replying to the Leader of the Opposition (Mr M. J. Savage), Mr Forbes said the Government was not _ so optimistic as to expect that the Bill would he passed during the current sitting, hut it was endeavouring to ensure that reasonable progress would be made. Continuing the debate, Mr Murdoch oaid that if the New Zealand banking iiystem was linked up with Bank of England there would be nothing to fear for the Dominion’s monetary system. The Bank of England had stood the test of time and was standing up to the present crisis in a unique manner. He uaid the Bill gave Parliament definite control over the monetary and this would be found to be most satisfactory. New Zealand was not rushing blindly into the institution of a reserve bank. Reserve banks had been successful wherever they had been tried. Mr Wright said that reserve banks lad not been successful everywhere. He contended that the Reserve Bank in the United States had,been largely responsible for the world-wide slump. He declared that if the Government had wished to impose its currency policy on the country the trading banks would not have hindered it but would have given every assistance. It appeared to him that the Reserve Bank would have to carry the whole burden of the exchange manipulation, and he suggested that that was the reason for the proposal to establish it. It was being created so that the Government could “ stand from underneath when the crash comes.” It had been claimed that the Reserve Bank would assist in the rehabilitation of the country. He said that the Reserve Bank could not increase the prices of commodities, but would have to act just as other banks had acted. The Minister of Finance (Mr J. G. Coates) had stated that he was going to take gold out of the coffers of the banks at its book value and sell it at its market value. “ If I voted for that sort of thing,” said Mr Wright, "I would feel that I was in the company of Turpin, Ned Kelly, and other brigands.” Mr Speaker: I think I must check the hon. member. He is reflecting on other members. Mr Wright: Well, I will say that if I voted for the proposal I would be admitting I do not understand the rudiments of common honesty. Mr Speaker again called Mr Wright to order. , Mr Wright: I am expressing my own Opinion. Perhaps I will be permitted to

say that this proposal amounts to confiscation. The Minister of Finance says that the gold is the property of the people, but it will take a lot to convince me of that.

Mr H. T. Armstrong (Christchurch East) alleged that the main purpose of the Bill was to make It more difficult for currency reform to be brought about. That was the purpose of those people who had instructed the Government in the matter. He asked whether the Bill proposed to do anything to stabilise the value of money, or whether the value of money would be fixed by- the more powerful institutions ■with which the country would be associated as a result of the passing of the Bill. He was afraid the Bill would not only lead to co-operation with other financial institutions but would also lead to domination. “As far as Parliament is concerned we shall have no say whatever for seven years,” he added. / Mr W. A. Bodkin (Central Otago) said he did not know of one international conference since 1920 that had not affirmed the principle of central reserve banking. World prosperity could only be achieved by international cooperation in an endeavour to raise the price level. He suggested that there was a weakness in the Bill in that it did not provide for the representation of stock firms.

Mr J. A. Lee (Grey Lynn) said that increased production and reduced wages had failed to get rid of the depression, and now they were going to try a central bank. He contended that the Reserve Bank Bill did not’propose to bring_ about a reform of the banking system in the interests of the people. Deflationary legislation had driven out of existence about £40,000,000 worth of purchasing power, but the Bill would not restore that money. Both inflation and deflation should be rejected and money should be placed on a commodity basis. The House adjourned at 5.30 p.m. EVENING SESSION The debate was continued when the House resumed at 7.30 p.m. Mr W. A. Veitch (Wanganui) said he believed the central banking system would eventually be established throughout* the world for the purpose of preventing price fluctuations. It was vitally important that there should be an international monetary standard, and to make this possible world control was necessary. The one great barrier against the freedom of trade between New Zealand and the United Kingdom was not lack of a Central Bank but the debasement’of the Dominion’s currency. If the management of the Central Bank was to be given a free hand to fix the rate of exchange a great benefit would be conferred. Mr Veitch said that if the Minister of Finance would give an assurance that the bank directorate would be allowed to fix the exchange rate in accordance with the balance of trade and without political interference he would support the Bill, but if that assurance were not forthcoming he would oppose it. Mr W. B. Parry (Auckland Central) said the Labour Party believed that the public credit should be controlled by the State and employed for the country’s development. The Bill would not help the country out of its difficulties. Mr W. P. Endean (Parnell) approving of the Bill, said the appointment of shareholders’ directors was a great safeguard. They could be trusted to select men of great knowledge and integrity. Regarding the appointment of a governor the Government should even go outside New Zealand if necessary in order to get a man' with the widest knowledge. The question of the transfer of gold should be dealt with by a tribunal composed of Supreme Court judges. Continuing, Mr Endean said the banka could put up a case with justice and the Government would have to give attention to it. The gold was owned by the banka—earned by their trading negotiations. Mr R. M*Keen (Wellington South) asked how the Reserve Bank would prevent a slump. It would have no control over the six proprietary banks. It appeared that Parliament was going to tax the people by £1,000,000 to secure £500,000 worth of private capital. Why should the credit of a nation be pledged for the sake of the few? Opposing the Bill, Mr D. M'Dougall (Mataura) likened the establishment of the Central Bank to the construction of main highways parallel to the railways. No one wanted a Reserve Bank, the institution of which would only accentuate the present difficulties. If the people could pull through the slump of the eighties without a Central Bank they could do the same to-day. Mr E. J. Howard (Christchurch South) said that most of the Government speakers had started by praising, the Bill and concluded by condemning it. If they were qll asked to delete the clauses to which they objected there would be very little of the Bill left, i Mr A. M. Samuel (Thames) intimated that he would vote against the Bill on the ground that it was a last desperate endeavour to prop up the present financial system —to preserve the monetary system of domination which had enslaved a great percentage of the population of the world for the benefit of the few. Mr W. J. Broadfoot (Waitomo) expressed the opinion that the capital of the bank should not be increased without the consent of Parliament. On a division taken at midnight the Labour amendment to the second reading was defeated by 43 votes to 28. Messrs Atmore, Rushworth, Samuel, Stallworthy, Tirikatene, Veitch, Wilkinson and Wright joined the Labour members in voting for the amendment. Replying to the debate on the second reading Mr Coates said it was difficult to understand Mr Veitch’s point of view. The Minister said that one of the principal purposes of the bank would be to consider the economic position of the country. It would play a very important part in maintaining the trade balance of our own country. Mr Coates said that Mr Wright had been very personal in his comments on the Bill. *He I were once closely associated,” the Minister added, “ but now he seems to adopt a personal attitude in criticism of anything with ’which I am concerned.” The Minister said it was noticeable that when Mr Wright had finished quoting certain figures a very prominent banker had left the House. -“Now I ask him who is in the hands of banks.” Mr Wright: I am not. Mr Coates said that Mr Wright had left the impression that he was being worked by the banks. Mr Wright: I am not. I haven’t an overdraft and have never had one. Mr Coates said that Mr Wright had left a very definite impression on members and it was for him to clear himself* Replying to Mr H. M. Rushworth (Bay of Islands), Mr Coates said that Parliament would have the right at any time to amend the Bill. Mr Rushworth had created the impression that the whole Bill was characterised by suspicion. “ I have never known anyone who can preach suspicion as he does,” the Minister said. “ They are unworthy suspicions. It should be accepted that most men in this country are honest men and want to do the best for New Zealand.” The second reading of the Bill was carried by 43 votes to 28. Mr Rushworth then moved—“ That it be an instruction to the committee on the Bill that it has power to set up a special committee composed of representatives of all groups in the House to conduct a full and open inquiry into the existing monetary and banking system of the Dominion and possible alternatives, and that a report of this inquiry be included when the Bill is reported back to the House.