BANKS, MANURES AND POLITICS.

Southland Times, Issue 20524, 28 June 1928, Page 3

BANKS, MANURES AND POLITICS.

To the Editor.

Sir, —Mr Alfred Ball is scarcely civil. He says he was amused at my letters. Why not be truthful and admit he was annoyed. He reminds me of the 14 year old girl who was chastised by her aunt and locked in the bedroom. About an hour after the aunt opened the door and asked, “Are you a good girl now ?” “No,” the girl answered “I am not. I spat on your dress, I spat on your hat and I spat on your boots and now I am waiting for more spit.” .Invariably where the Labour Party is concerned Mr Ball shows aggressiveness. Your correspondent does not know the AB.C. of the subject under discussion.

The £24,000,000 I referred to was held by the banks and they determine what credit shall be issued, to whom it shall be issued, for what it shall be issued and what rate of interest shall be paid. The banks

may restrict overdrafts which reduce prices. They may extend credit which increase prices. The banks have more power over primary production, importation and prices than either Parliament, farmer, industrial worker or merchant. The associated banks in conference determine the banking policy for the Dominion and they always shape it in the interests of shareholders and financial corporations not in the interests of industry or the welfare of the country.

On Monday, May 18, 1925 the Stock Exchange quotation for the Bank of New Zealand shares, £1 shares, was £2 16/3. Seven weeks prior to May 18 (April 1, 1925) 750.000 shares were by arrangement with the Government, issued to shareholders at par (£1). This means that the Government sanctioned a free gift of £1,359,375 to be presented to the ordinary shareholders of the Bank of New Zealand. The £24,000,000 reefrred to by Mr Ball to non interest bearing deposits. The banks get this money free of charge and is the main source of funds from which they make advances at overdraft rates ranging from 64 to 8 per cent. Yet there is a man in Invercargill named Alfred Ball who says in a public newspaper, he sees nothing unfair in this. He further says: “This banking system must remain inviolate from any ‘interference.’ This financial plundering is to be carried on aided by a Government who is supposed to act in the interests of the people. One bank alone can, in addition to declaring fat dividends present its shareholders with a free gift of £1,359,375. This sum is sufficient to increase the wage of every organized industrial worker in the Dominion to the extent of 5/5 per week. As “Grand-Pa” says the banks are trying to hide their profits, at the same time the farmers are being driven off their farms or working on them like slaves to pay their interest. Let them struggle; let the country be filled with unemployed; pull to pieces that legal contraption known as the Arbitration Court then we will have competition among the starving unemployed for wages. Send the women and children out to work on farms. Keep the Charitable Aid Board busy giving food to the starving. We must not, we dare not, interfere with the financial power. I want to assure Mr Ball I have never asked assistance from the Government and he will need to make further inquiries regarding the Bluff plant —I am, etc., W. C. DENHAM.