CO-OPERATION

Timaru Herald, Volume CXXXVII, Issue 19632, 28 October 1933, Page 8

CO-OPERATION

TRADE AND FINANCE THE GOVERNMENT’S AIM By Telegraph—Press Association WELLINGTON, October 27. Speaking in the House of Representatives this afternoon, the Prime Minister, the Rt. Hon. G. W. Forbes said that he knew that outside organisations had been attempting to influence the voting of Coalition members on the Reserve Bank issue. He knew all about the resolutions which had been sent to members directing them to carry out the will of some organisation which had arranged the public meeting at which the resolution was passed after a speaker had advanced a one-sided argument. “Sort of Veiled Threat.” “It is a sort of veiled threat that they must carry out directions of some self-appointed body.” he said, “but if members were to have their conduct dictated in this way they would be spineless creatures, and it would be a poor look-out for Parliament and New Zealand. Members come here with the desire and intention to do their duty to their constituents without taking heed of threats. X have received a number of telegrams of a similar character, but members of Parliament and members of the Government are in a much better position to judge these issues than the people who attend public meetings and pass resolutions. A Government which merely complied with resolutions could hastily be regarded as progressive because it would have been driven." Mr Forbes said that if the Bill were not passed New Zealand would be seriously handicapped and deprived of the full benefits of the financial policy that could be carried out through a central institution in co-operation with other countries. “When Sir Otto Nlemeyer presented his report about two years ago,” he said, “I had my doubts, and I admit I did not thoroughly understand the value of the recommendations.

Since then there has been full opportunity for study and examination, and we have had exceptional opportunities for gathering information both at Ottawa and at London.” The Prime Minister said that It had been the unanimous opinion at the Ottawa Conference that a central bank would be of great assistance towards co-operation within the Empire. The Hon. W. Downie Stewart had then visited London and as a result of his conversations there had cabled the Government urging It to introduce central banking legislation immediately. The experts of all countries represented at the World Conference had emphasised the importance of central banks in all countries with the object of achieving financial cooperation. The Conference had passed very definite recommendations on the subject. An Absurd Suggestion. The very thing that the Government was aiming at was co-operation in trade and finance, but because it spoke of seeking co-operation with other countries it was accused of being prepared to accept domination from other nations. Co-operation did not mean that one country would dominate another. One of the main benefits of a central bank, would be that New Zealand would be supplied with information relating to world movements. If there had been a central bank in 1931 New Zealand would have been in a much better position to meet the conditions which arose. It was absurd to suggest that the Government did not control the Dominion's monetary policy. As a matter of fact it would have greater control than ever it had had previously.