LIFTING OF RESTRICTIONS ON TRADING BANKS?

Putaruru Press, Volume XXVI, Issue 1351, 13 October 1949, Page 3

LIFTING OF RESTRICTIONS ON TRADING BANKS?

GRANTING OF OVERDRAFTS Would the Government consider lifting the restrictions on trading banks in relation to the granting of overdrafts ? asked Mr A. S. Sutherland (Nat.,' Hauraki) in the House of Representatives. In a note, he said it was alleged that the present restrictive policy was hindering increased production and the future development of the primary and secondary industries.

Replying, the Minister of Finance (Mr Nash) said the Government’s policy of controlling advances by trading banks was an anti-flationary one, which aimed at limiting the amount of bank credit issued, particularly where the accommodation could and should be obtained from non-banking sources. The policy was subject to constant review and its operation was kept in line with current economic and financial conditions. The measure of control exercised was no more than was necessary to prevent undue extension of bank credit. It was not considered that the control hindered increased production because each case was considered on its merits, and provision was made for cases where increases in production were likely to be hindered by failure to secure adequate financial accommodation. The Government would consider revising or lifting the control measures’ if at any time the continuation of the policy Appeared unnecessary or undesirable. In another question, Mr Sutherland drew the attention of the Minister of Justice to the remarks attributed to a magistrate at Kaitaia regarding the beating of wives by husbands, and asked whether legislation was necessary to deal with

the matter. “it has been stated by the highest authority that it has never been the law in England—and' it certainly has never bfeen the law. in this country—that a man may beat his wife,” replied the Minister (Mr Mason). “I feel sure our Courts would fully uphold that view. No amendment to the law is considered necessary.”