DEMOCRACY IS BEING EJECTED

Wanganui Chronicle, 17 October 1947, Page 5

DEMOCRACY IS BEING EJECTED

Sydney, Oct. 16. The Leader of the Opposition (Mr. Menzies) said that apart from an interesting disclosure that there will be alternative means of taking over the banks so that each bank will have a choice between committing suicide and being murdered, Mr. Chifley s speech was merely a lengthy edition of the statement made by him some week:; ago. Mr. Fadden, leader of the Country Party, commented: “Democracy was ejected simultaneously with the introduction of the Banking Bill, which was just as cold-blooded and as revolutionary as expected, with straightout socialisation its sole object. "PTBUCS FEARS CONFIRMED” Mr. A S. Osborne, general manager of the Commercial Banking Company of Sydney, said all the public’s fears were now confirmed that the Government seeks to impose a complete banking monopoly on the people of Australia. “Under present conditions the creation of credit by the Commonwealth Bank to finance the measure would involve the most dangerous infletionarv consequences, thus refuting the claim that the nationalisation is designed to prevent inflation,” he said. Mr. Osborne added: “Blatant discrimination regarding compensation is involved in the proposal that banks which are in a position to come to a voluntary agreement will receive exemptions from taxation, while such benefits will be denied others. The attempted use of such a lever can onlv be regarded as reprehensible.” Mr. C. Anderson, vice-president of the New South Wales Trades and Labour Council, says that Mr. Chifley shown clearly that it is vital that the banks snuuld be nationalised Mr. J. Stewart, M.L.C., State Secretary of the Australian Labour Party, said the speech had covered very effectively all criticism that had been levelled against the Government’s proposals. Mr. Chi flier’s exposition last night of the case for the abolition of private banking was very much of an anticlimax,” says the “Sydney’ Morning Herqld” in an editorial. The nation has waited during two months for a reasoned justification of the revolutionary change proposed by the Government. This the Prime Minister entirely failed to give. His speech was tedious in its review of banking developments and policy and grossly unjust in its estimate of the part played by private banks in the expansion o* Australian industry and production. Of convincing argument why these banks must suddenly be swept away and a politrcally-con-trolled monopoly substituted for them, it contained nothing at all. The Federal Parliament has never before been invited to pass so momentous a measure on such slender grounds. "Naturally.” says the "Herald.” “the financial revolution is to be wrought as painlessly as possible. The victims, particularly the banks’ shareholders and staff, are to be given every inducement to go quietly. The former are even being offered a bribe in the shape of a tax exemption on

dividends or distributions arising from the voluntary surrender of their assets. ‘This .oncession,’ said Mr. Chifley brazenly, ‘does not apply in the case of compulsory acquisition.’ A more contemptible misuse of taxation power would be hard to imagine and the legality of such gross discrimination must be open to serious question. Equally indefensible and constiutionallv dubious is the attempt to deprive shareholders of their right to appeal to the high court from the proposed Federal Court.