A STATE BANK

Timaru Herald, Volume CXXXVII, Issue 19625, 20 October 1933, Page 8

A STATE BANK

OBJECT OF A LABOUR BILL FIRST READING DEBATE By T'.legraph— Press Association WELLINGTON, October 19. Introducing the Bank of New Zealand Amendment Bill In the House of Representatives this afternoon, Mr F. Longstone ' Lab Waimarino), said that if the Government would take up the Bill there would be no need for a Central Bank or any other of the schemes that had been suggested. The "tie up" of money in New Zealand today was definitely owing to the policy of the Bank of New Zealand which controlled half the banking business in the Dominion. He said it was wrong in principle that the directors of the Bank of New Zealand should be associated in big commercial concerns. The main provision of the Bill was that directors appointed to the Board of the Bank of New Zealand should not be connected with any other banking institution, commercial concern or joint stock company. Mr R. A. Wright (C., Wellington Suburbs) said that he thought the directors of the bank should be the best men possible, and he believed that the present directors filled the bill. He thought it preferable for the Government to take over the Bank of New Zealand than to establish a central bank. Mr c. L. Carr (Lab., Tinian” said that the whole object of the Bill jvas to make the Bank of New Zeaiana a State Bank. Mr R. Semple (Lab., Wellington East) said that the Bill represented an effort to give back to the people their legitimate right to create wealth and consume that wealth. The credit facilities of the country should always remain part of the people's rights through the Government. | Mr W. E. Barnard (Lab., Napier) said that the intention of the Bill was that the Bank of New Zealand should be run in the interests of the people of New Zealand and not in the inj terests of a few fortunate shareholders. The time would come when the mass of the people would insist that effect be given to the principles of the | measure. Prudent Administration. Mr J. Hargest (C„ Invercargill) pointed out that there had been any amount of credit in the United States between 1925 and 1929, and yet that country's cred't had fallen. That would happen in New Zealand unless the ; banking system were prudently ad- ! ministered. He was opposed to the j Bill. Mr M. J. Savage. Leader of the i Opposition, said that the principle contained in the measure was included in the Reserve Bank of New Zealand Bill. He contended that the people who controlled the credit of the country ar.d were at the same time interested in industry must have an advantage over their competitors Mr W. A. Veitch <C.. Wanganui', said that there should be established within the Dominion a system of managed currency that would keep prices within reasonable distance of the needs of the people and keep them in a stable condition. Mr W. A. Bodkin (C.. Central Otago) .alii that the Government could be ; justified in adopting the measure, only iif it could be shown that the directors had failed in their duty. The Bill was read a first time.