PURCHASE OF BANK

Timaru Herald, Volume CLVIII, Issue 23257, 19 July 1945, Page 4

PURCHASE OF BANK

Farmers Disapprove Direct Action Urged iN.Z.P.A.) WELLINGTON. July 18. Disapproval of the Government's intention to take ovc. the private shares in the Bank of New Zealand, lor which it had obtained no mandate from the peep'", was expressed by a unanimous resolution of the annual conference of the New Zealand Farmers’ Union. Mr B. S. Williams (Havelock Norlin submitted the motion. If the bank went they were a long wav on the road to complete socialism, said Mr R. O. Montgomerie i Wanganui •. They had to take a stand. He was averse to direct action, but if they were fighting for a high principle they should go the whole way. Mr Shannon (Feildmg) said his district had sent him to the conference to ask for leadership. They would be behind any action the conference recommended. They wanted some direction as to wiiat to do and were not getting it. That feeling was not confined to his district only. He wanted to take back some assurance. If they were only to sit down and do nothing, all was lost. Mr R. G. Buckleton (Mahara) suggested that the conference should stand adjourned to ascertain what actions the Government could take regarding the banking legislation, the census, the country quota and stabilisation. This would enable the organisation of direct action to combat the Government’s intentions, which were a direct attack on the farming community and on the foundations of freedom and democracy. Mr R. W. Dunning said that a committee on direct action was set. up at the 1944 conference, but nothing had been heard of it. Mr W. W. Mulholland (president) said he had informed those concerned that he did not think the Union would take part in the mass businessmen's deputation to Parliament, but it might take similar action on its own account. Greater Issues at Stake Farmer's would be unwise to rise in a simulation of wrath on this issue, said Mr J. H. Furniss (Auckland l . They had in the past surrendered to exproprietary acts, the effect of which on farmers was greater than this one might be. What support had they received from businessmen in years gone by? He did not. approve of the taking over of the Bank of New Zealand, but for years they had allowed unjust acts to affect them and did nothing but pass motions. They would be called on at no distant date to conserve all their energy to defend their own interests. They must not dissipate their spiritual material and resources on issues that did not vitally concern them. They should concentrate on such issues as preventing the nationalisation of their produce, the country quota and the unbearable burden of hospital taxation. Mr A. E. Robinson (Auckland) said that, when they fought for agricultural banking, the Bank of New Zealand was their biggest enemy. When they got intermediate credit the bank howled for a counterpart and got it, using the funds to finance a film company in Christchurch and a theatre in Auckland. It was decided to set up a committee on the bank question. “A Good Speculation” (N.Z.P.A.) WELLINGTON, July 18. In view of the fact that the Minister of Finance had stated on a number of occasions that the policy of the Bank of New Zealand would not be changed when the Government took over the private shares, and in view of the control that tire Government already had through the Reserve Bank and the Government majority on the board of director of the Bank of New Zealand, the purchasing of the privately held shares in the Bank of New Zealand seemed to be a useless expenditure of public money, tending to increase the inflationary tendency l and to undermine the idea of stabilisation, said the Hon. V. Ward, speaking in the Address-in-Reply Debate in the Legislative Council to-day. He reminded members that when the Government came to the rescue of the bank in the last century and put the country behind it by subscribing £2,000,000, banknotes had been selling on the street at from 1/- to 5/each. That could not be called a useless expenditure of public money, and in years to come the taking over of the Bank of New Zealand would be considered as a good speculation and better for the people. Bank shares were being made a stalking horse for “the road to socialism” prouagafida.