CONTROL OF BANKING

Poverty Bay Herald, Volume LXV, Issue 19701, 5 August 1938, Page 4

CONTROL OF BANKING

LABOUR PARTY OBJECTIVE v MANDATE AWAITED (Parliamentary Reporter.) WELLINGTON, this day. The question of banking reform was discussed by Mr. A. F. Moncur . (Labour. Rotorua), during the debate on the Budget in the House of Representatives yesterday. . » He said it would be necessary eventually for the Government to take control of the banking system. It was his belief that the Government could not put its policy into complete operation until the country had assumed the entire ownership and con* trol of its banks. Already there had Been- a deviation from the old orthodox banking system, said Mr. Moncur. Those countries which departed from the gold standard in 1930 had made definite progress during the succeeding years, but those adhering to the , strictly-orthodox system had stood . still. Experience had shown that it was possible to operate a banking system based, in part at any rate, upon goods and services and Mr. Moncur believed it was possible to establish a complete internal economy on these lines. When the people tuny realised the benefits they would receive as a result of State ownership and control of the whole of the banking system of the country, they would readily con- * sent to a complete change in the present system, added Mr'. Moncur. Ultirmately the Government would give effect to this policy, but that would not be done until it had. received a mandate from the people. > .