MONEY SHORTAGE.

Star (Christchurch), Volume LXVI, Issue 20278, 12 April 1934, Page 9

MONEY SHORTAGE.

Bank Representatives Questioned. MONETARY COMMITTEE. Per Press Association. WELLINGTON, April 12. Examination of representatives of the Associated Banks, in amplification of their statement of banking policy in New Zealand, presented on March 7> was resumed to-day by the MonetaryCommittee. The banks were represented by’ Messrs J. Shaw, E. C. Fussell and T. G. A. Harle. Air W. Nash, M.P. (Hutt) said everyone at present was complaining of a shortage of money’, and asked Mr Fussell the reason. He replied that it was lack of confidence, or lack of sufficient avenues for profitable investment. A man could obtain money from the banks, but he. would not use that money unless he could use it effectively. There were not sufficient avenues for the profitable employment o{ money. There was lack of confidence in the prospects of profitable trading. That was the immediate effect of conditions overseas, caused by the depresMr Nash: B"t trading i«= on the increase in the Old Country. Mr Fussell: It is on the upgrade, and more money’ is being used. Mr Nadi: Cannot that be made applicable in New Zealand? Mr Fus’ell replied that so far as the banks in New Zealand were concerned. if more money’ was wanted. it could be had. To further questions he said there was no real banking reason making it necessary to hold gold in this countrv. Public securities would do as well. To a certain extent the holding of gold here was a loss to New Zealand, but the knowledge that gold was held here had a distinct value of its own in bad times. That knowledge gave a sense of securitv. If money’ were issued by a credit board under political control, there would be the. dancer of inflation, and other aspects, besides aspects, would come into the question. ___