PARTY CONTROL FEARED

Southland Times, Issue 22859, 7 April 1936, Page 8

PARTY CONTROL FEARED

FUNDS OF DOMINION (From Our Parliamentary Reporter.) Wellington, April 6. The opinion that the Reserve Bank Amendment Bill would enable the funds and credit of the Dominion to be used for party or political purposes was expressed by Mr W. J. Polson (Nat., Stratford) in speaking on the second reading of the Bill in the House of Representatives to-night. “I am one of the few members on this side of the House who believes in State control of a central bank,” said Mr Polson. “I think it is a sound principle, and it is recognized as such in most parts of the world. I have voted in favour of State control and the elimination of shareholder capital, and I will support that principle at the right moment with my vote.” Mr Polson said that the speech of the Minister of Finance had made him uneasy. “This Bill goes for political control, not State control,” he added. “It will give the Minister absolute control of the banking system to do what he likes with, subject, of course, to the wishes of his Cabinet. It can mean that the funds and credit of New Zealand can be used for any party or political purpose.” Mr Polson also asked for an assurance that there would be nothing in the Bill that would enable the issue of credit free of interest.

“I am waiting for an answer,” added Mr Polson. Then, after a short pause: “I get no answer.” The Minister of Finance (the Hon. W. Nash): You will get your answer. Mi’ Polson: Neither the Prime Minister nor the Minister of Finance will answer me. I am entitled to say to the

country: “Beware of this Bill.” The Prime Minister (the Hon. M. J. Savage): If you think one member of this party will be fighting another you have another think coming. Mr Polson: I am of the opinion that the party is a machine, and that its opinions are manufactured in caucus.