TASKS BEFORE THE HOUSE

Taranaki Daily News, 13 December 1932, Page 9

TASKS BEFORE THE HOUSE

SEVERAL IMPORTANT BILLS CENTRAL RESERVE BANK PLAN. SETTLEMENT ON SMALL FARMS. WEEKS OF WORK IN NEW YEAR. . (News .Parliamentary Reporter.) Wellington, Last Night. After a sitting which extended over 30 hours, Parliament adjourned on Friday afternoon until Thursday, January 26. During that time the floodgates of- oratory were thrown open, and members took that opportunity that a Finance Bill gives to talk on a wide range of topics.. The debate also resulted in one or two skirmishes, but these are only to be expected when members begin to feel the effects of a sleepless night. ■ A few hard words from one side of the House brings forth a retaliation from the other side, and dozing or drowsy Parliamentarians begin to sit up and take notice. It. is generally in. the early hours of the morning that scenes occur, but happily they appear to be quickly forgotten. After the battle is over members are to be seen fraternising with one another apparently oblivious of what has gone before. . • » ’ I Towards the end of the sitting the Government introduced two of the most important measures it has brought down this' session. These were the Reserve Bank of New Zealand Bill and the Small Farms (Relief- of Unemployment) Bill. Both Bills contain principles which may have far-reaching effects on the economic life of the Dominion.. The establishment of a central bank, has been in the mind of the Government since the proposal was first advanced by Sir Otto Niemeyer in February, 1931, and it is interesting to note that the Bill which has just been introduced follows very closely the suggested legislation he, appended to his report. The Small Farms (Relief of Unemployment) Bill is the result of a recent conference between the Minister, of Public Works (the Rt. Hon. J. G. Coates) and the heads of various State departments, and it is a variation of the “usehold” policy which some years ago was advanced by the. Labour Party. SOUTH AFRICA’S EXAMPLE. - " In deciding to set up a central reserve bank New Zealand is following the example of South Africa, which has had such an institution since 1921. The principal functions of a. central bank may be summed up as follows:— (1) To serve as a bank of issue and assume responsibility for maintaining the currency on a solid and secure footing, for which purpose'it -is granted the sole right of note issue, or at any rate a partial monopoly thereof. (2) To act as a reserve bank and hold a large part of the cash reserves of the commercial banks, either by law or tradition.

(3) To operate as a clearing house for the other banks. 1 • . . (4) To act as a bankers’ bank and rediscount bills of exchange, promissory notes or other commercial paper presented by the commercial banks. (a) To undertake that it would endeavour to maintain the' entire credit structure on a sound basis and control the volume of credit, in. which respect it should seek to bring about the contraction or expansion thereof in accordance with the needs of business and in 'the interest of national economic welfare.' • ' " ’ ■ '

(6) To act as. the sole or principal banker or financial agent generally of the Government, holding Government balances and financing' the Treasury at certain tinies in anticipation of heavy tax collections by means of advances or discounts of Treasury bills.

The proposed New Zealand bank will have the sole right of- note issue and be the sole banker for the; Government. In no way will it carry out the ■' functions of a commercial bank, and except for the fact that monthly returns of its operation will be published, its operations will probably pass unnoticed by the general public. The bank is to •be free from political influence—Sir Otto Niemeyer was very emphatic about this —and the Labour Party will probably condemn this aspect of tl— proposal in the strongest terms. It is the contention of the Opposition that the monetary and credit structure of the country should be governed by the representatives of the people.

TWENTY BILLS PASSED.

Up to the adjournment'Parliament had given its assent to 20 Government Bills and three local Bills. The most important of the Government measures was the Customs Act Amendment Bill, embodying the decisions of the Qttawa Conference, the Urban Farm Land Rating Bill and the Hospitals and Charitable Amendment Bill. The remaining Bills were mostly of a machinery nature. There are 15 Bills still’on the order paper. These include the Government Superannuation Funds Bill, the Electoral Amendment Bill, providing for the permanent extension of the life of Parliament, the Reserve Bank of New Zea-' land Bill, and the Small 'Farms (Relief of Unemployment) Bill. Thu disposal of these' will take some time, and Parliament when it meets again will also be required to give consideration to the decisions made by Cabinet during the recess. Thus there... is every indication that it will take several weeks to dispose of the legislation either presented or under consideration. ; -