RESERVE BANK BILL

Wanganui Chronicle, Volume 83, Issue 244, 16 October 1939, Page 6

RESERVE BANK BILL

HASTY PASSAGE QUESTIONS TO MINISTER [ Per Proas Association.] WELLINGTON. Octfl 14. 'l’he following letter on the Reserve. Bank Amendment Bill was sent earlier this week to the Minister of Finance by the Associated Chambers of Commerce of New Zealand:— “The production by the Government of the Reserve Bank Amendment Bill, the nature of the provisions of the measure, the Inadequate second-read-ing explanation of the intentions of the Government concerning th« powers sought, and the haste with which the Bill put through all stages have all caused growing concern among the commercial common ity of New Zealand. The reaction of the Associated Chambers of Commerce to political control of banking and monetary policy was not. and not by any means favourable. h2i we made no protest against the Bill on its appearance, pending your giving an explanation at the points of )t> second reading as to the policy the Government proposed to pursue in exercise of the powers sought under the Bill, in order that we could view the Bill in the light of that explanation. Not only was there no interval allowed after the second-reading explanation for the measure to bL weighed by the public (the Bill being put through all stages during the night) but that explanation, we lespectfully submit, left many major questions completely obscure. “We would have thought that the objective of concluding the Parliamentary session by last week-end was of the smallest Importance as coin pared with the need for careful public consideration of the extensive end dangerous changes to* our Reserve banking system brought about by the Bill. “That matter apart, however, since the measure has now been dealt with, what still remains of current concern is the fact, that the fears engermered by the Bill because of Its inflationary possibilities have not been dispersed, but rather have increased, owing to the inadequacy of the explanations of Government policy gi\ ?n to date on behalf of the Bill and its powers. “Will the Government at this stage allay the deep apprehension which has arisen throughout the country by giving more explicit explanations on such important, questions as (1) precisely how funds for war purposes over and above those forthcoming from revenue are to be provided? To what extent it is considered by the Government Reserve Bank credit can be used without inflating the currency? (3) What is the nature of the requests that were made by the Government to the Reserve Bank, but not met by the Bank, and which constitute one of the reason for the promotion of the Bill. (4) In short, how are the extensive powers which have been taken to be applied—if not over the whole war period (the duration of which the Government cannot know) at least for that immediate short-term period which the Government must have fully estimated already in relation to the augmentation ot war finance- through Nie powers of the Reserve Bank Amendment Bill. “As this is a matter of public concern. we propose handing a copy cf this letter to the Press for publication. and we hope that the questions raised herein will be dealt with for the information of the public.”

Unsatisfactory Proof. “It is a pretty worthless way ol proving service," said Mr. Justice Callan in the Auckland Supreme Court on Thursday, when a husband with some hesitation identified handwriting on an affidavit of service. “Some day someone is going to fall in about it,’ His Honour continued. “This business of the spouse standing up and saying, That is the handwriting of the other spouse.’ is developing info a meaningless farce, and some day it will be pronounced insufficient.’’ v