STATE BANK PLAN

Otago Daily Times, Issue 25799, 21 March 1945, Page 6

STATE BANK PLAN

NO VALID REASON GOVERNMENT SUBMITTING TO PRESSURE (P.A.) WELLINGTON, Mar. 20. “By his announcement at Gisborne that legislation is to be brought down dealing with the Bank of New Zealand, the Minister of Finance, Mr W. Nash, has made the first public announcement that the Government intends to act on the Bank of New Zealand issue,” says a statement by the Associated Chambers of Commerce. “ The statement will be received with dismay by all who value sound finance and who know how much the British system of trading banks has contributed to New Zealand’s prosperity.

“In seconding the resolution passed by the recent Labour Party conference calling for the compulsory purchase of private shareholdings in the bank, Mr Nash showed that the ill-informed banking reformers at the conference had forced him to eat his earliest declarations that the Government could not do as well as the bank itself was doing. By the announcement at Gisborne he has shown that the Government itself has been coerced into bowing to the clamour of ‘ slogan-slinging partisans.’ Still no valid reason has been produced in justification of the proposed complete nationalisation of the bank, and nothing has been advanced either to show that the bank has not done its duty to the country or that the people have been denied any rights or advantages which State ownership can supply. It is time the people expressed themselves and told the Government to keep its hands off or seek a mandate.” After referring to the taking over of the coal mines, the statement proceeds: “ The Government already holds the controlling interest in the Bank of New Zealand, and has the right to appoint four directors out of the six. What more can be gained by forcing the private shareholders to sell out? Nothing, probably, but a free hand to play ducks and drakes with the banking system and provide a party and political tool whereby politicians and pressure groups can precipitate a financial bear garden. 'lt is rumoured that State bank advances will promptly be made to launch the Labour daily, thereby loading a financial responsibility on to the whole community in respect of a party enterprise Is this true? If not, what is the reason for socialising the Bank of New Zealand? ”