NATIONALISING OF BANKS IN N.Z.

Wanganui Chronicle, 2 October 1947, Page 4

NATIONALISING OF BANKS IN N.Z.

COMMERCE CHAMBERS SEEK 1 CLARIFICATION

(P.A.) Wellington. Oct. 1. Under the date of September 24. the Associated Chambers of Commerce wrote to the Minister of Finance (Mr. Nash, regarding the nationalisation of banking, as follows: "We noticed with interest that to a question in the House of Representatives as to whether it is the intention of the Government to introduce legislation in line with that announced in Australia, namely to nationalise the trading banks, you replied that, in view of the purchase by the New Zealand Government of the shares of the Bank of New Zealand, and having in mind the control exercised by the Government over the banking system generally through the State-owned Reserve Bank of New Zealand, it was not proposed by the Government to proceed further along these lines under existing circumstances. "We take it from this statement that the New Zealand Government, therefore, considers the nationalisation of banging has gone far enough , in New Zealand. If, however, the J Australian Government proceeds with banking nationalisation, then the effect will be to impose further bank nationalisaiion on the people of New Zealand any way. We do not need to point out that with the Bank of New Zealand nationalised, and with four Australian banks nationalised (and without doubt acting in concert in the latter case in accordance with the policy laid down by the Australian Government) the choice of banking customers in New Zealand and of the general public of this Dominion would be restricted to two sets of nationalised banks, and only one private banking institution, i.e., the National Bank of New Zealand. Such action by the Australian Government would, therefore, be contrary to the expressed opinion of the New Zealand Government against further nationalisation of banking, and we would be pleased to learn from you that the New Zealand Government intends to make an official piptest to the commonwealth Government against I,ls proceeding with its banking nationalisation programme as far as such will affect New Zealand." In reply, the Minister states: "It would not be correct to take from what I said anything more than what is contained In the text of the reply to the question asked, and the Government does not in any way propose to make any protest to the Commonwealth Government against Its present procedure.”