MONETARY REFORM URGED

Taranaki Daily News, 23 July 1931, Page 4

MONETARY REFORM URGED

LABOUR MEMBER’S SCHEME

STATE INTERVENTION PROPOSED.

“BANKS COULD CREATE CREDIT.”

By Telegraph.—Press Association. Wellington, Last Night. The Bank of New Zealand Amendment Bill was introduced in the House of Representatives this afternoon by Mr. F. Langstone (Lab., Wainiarino), and was read a first time. Mr. Langstone hoped the Government would take over the measure. There was urgent need, he said, for monetary reform to meet the present conditions.

Th world had never known more wealth than there was to-day, said Mr. Langstone, but in spite of that people were starving. There were not enough consumers of capital and if the banks could not supply the remedy the State would have to step into the breach. While there was widespread poverty the Bank of New Zealand was still paying big profits. The New Zealand Government in 189-1 had come to the aid of the Bank of New Zealand by creating credit, and credit was what was required to-day. The Government was becoming more and more subject to the domination of the bankers, Mr. Langstone declared, and it was a pity the Bank of New Zealand had not become a State bank in 1894. If his Bill were passed_ it would go a long way towards achieving that result. Bankers could create credit if they wished at the present time.