MOVE TOWARDS THE LEFT

Otago Daily Times, Issue 26545, 21 August 1947, Page 7

MOVE TOWARDS THE LEFT

American Bankers Express Concern Rec. 8 p.m. * NEW YORK, Aug. 19. A spokesman for the New York bankers told the Australian Associated Press that there was great interest in banking circles , not only in New York but throughout the nation in the Australian Government’s nationalisation proposal. “Bankers here feel that the Australian Government is making a mistake,” said the spokesman. Bankers very much dislike the idea of Anglo-Saxon countries embarking upon nationalisation because they regard it as a pretty considerable, move towards the Left. They believe that at least a part of Britain’s troubles is due to socialisation. American bankers think that Australia should pause and take a look at the results in Britain before taking such an irrevocable step.

“Banking economists believe that under nationalisation efficiency declines and costs increase,” the spokesman added. “ This has been the actual result whenever nationaliation has been effected in America. American bankers admit that Left-wing economists here believe that nationalisation in England has not gone far enough to be successful, but such a view is repelled' by the majority of banking economists, who say that nationalisation inevitably mean rigid Government regulations wheras private banking does not suffer from such inflexibility, which necessarily tends towards immobilisation of credit, which in turn retards the development of industry and commerce.” Because it is regarded as an internal matter, official circles in Washington decline to comment on the nationalisation proposals. Wall Street bankers have promised moral support to the Australian trading banks’ avowed fight to the finish against nationalisation. ■ . , Because United States banks have no offices in Australia, some bankers have withheld comment until they have received full information. Bankers said the situation seemed most unusual, as the trading banks had apparently not been consulted by the Government before the nationalisation announcement. One said: “There is absolutely no reasonable argument for the proposed nationalisation, even as a safeguard against possible repercussions from the European monetary crisis and to protect the Australian banking system from a predicted eventual United States depression."