RESERVE BANK BILL

Waihi Daily Telegraph, Volume XXX, Issue 8530, 19 October 1933, Page 3

RESERVE BANK BILL

GIVES RISE TO APPREHENSION M - THE MEASURE CONDEMNED FAILURE IN UNITED STATES (Contributed by L.F.)

The Reserve Bank Bill, which the

Government has declared its intention of passing into law, is creating a great deal of apprehension among all sections of the community. It is clearly a measure that has its origin outside the confines of New Zealand Indeed, apart from the leaders of the Coalition Government, it is hard to find an individual or organisation having the slightest enthusiasm for a reserve bank, in spite of the fact that the Government has published inspi:ed articles assuring us that such a banking system is an urgent necessity. It seems to be shrouded in mystery and there is an urge behind it which is in need of explanation. The Prime Minister, a few months age, when the exchange rate pistol was levelled at his head, informed the deputation of M’s.P. who waited upi»n him that he knew nothing whatever about banking and finance, and it ■was then rumoured it was for ihis Toascn he was selected to represent "New Zealand at the recent World Economic Conference. It is a strange coincidence that this proposed banking Bill was actually in the Government’s possession ‘at the time he asserted that he knew nothing aoout such matters. AMERICA’S EXPERIENCE New Zealand is not the first country that has been lured into the machinations of a reserve bank. One •could fill the columns of the “Waihi Telegraph” for months to conic recording the disastrous results which, (have followed in the wake of reserve (banks in other parts of the world. 3n 19115 the Government of America •was tricked into promoting a cert nil reserve bank as a measure to prevent financial crisis and preserve siabla conditions, but in practice the system has proved the greatest agency of oppression the world has ever known. Mr L. B. McFadden, an expresident of the Pennsylvania Bankers’ Association, and who has been a member of Congress for many years .and .filled the office of chairman of the United States House of Representatives Banking and Currency Comrmittee, when addressing Congress, isaid, “Mr Chairman, we have in this ►country one of the most corrupt institutions the world has ever known. VI refer to the Federal Reserve Banks. The depredations and the iniquities •of the Federal Reserve Board and the (Federal Reserve Banks, acting together, have cost this country enough money tc pay the national debt several times over. EVILS OF INSTITUTION -"This evil institution,” proveeded Mr McFadden, “has impoverished and ruined the people of the United States” has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects ol the law under which it operates, through the maladministration of that law by the Federal Reserve Banks. The Government is In this banking business as never before. Against Us will it has been made the backer of house thieves and •card sharps, bootleggers, smugglers, i -.speculators and swindlers in all parts iof the world. Through the Federal (Reserve Board and the Federal Banks

•.the riff-raff of every country is operating on the public credit of the United States Government. Meanwhile and on account of it, we are in the midst of the greatest depression •we have ever known. At no time in our history has the general welfare of the people of the United States been at a lower level, or the mind of the people so filled with dispair. Every dollar of the billions Kreuger and his gang drew out of this country on acceptance was drawn from the GovernA mient and people of the United States through the Federal Reserve Board and the Federal Reserve Banks. The

credit of the United States government was peddled to him by the I Federal Reserve Banks for their own | -private gain. They have been peddling the credit of this Government to the swindlers and speculators of all - lia tions. That is what happens when a country forsakes its constitution and gives its sovereignty over public currency to private interests. Give them the Flag and they will sell it. BRITISH CRITICISM j

Such is the view of tne uuueu States ex-chairman of the House of Representatives Banking and Currency Committee on the character of the forces which operate behind the ■United States federal reserve system. ! The governor of the Bank of England for years past has been running over '**’■ to America to consult (or get his ordeis from) the Federal Reserve Board, but the governor of the * ederal Reserve Board wastes no time running over to see the Bank of England Per medium of Sir Otto Niemeyerand Professor Theodor Emmanuel Gugenheim Gregory, there trickles down to the Government ot New Zealand the advice of international high finance, which is filling this country with unemployment, and distress. Lord Beaverbrook recently con- ' V clemned the policy of Mr Montagu "’'Norman, governor of the Bank ot England, in keeping money in short supply- Lord Beaverbrook said, "Now wo cannot remove Mr Montagu Norman. There he sits, surrounded by his banking board, which owes no responsibility whatever to the public. There- are men sitting on that board who have associations with deep financial commitments in foreign countries, It is quite certain they will mot remove Mr Norman. His policy -/ S uits them very well. Let us contemplate the launching of a wellorganised movement to drive the foreign bankers off the board of direction of the Bank of England. Let us consider what can be done by mobilising opinion against Mr Norman among the British citizens who are holders of bank stock.’’’

CONTROL FROM ENGLAND Democratic statesmanship in New •Zealand for many years past consisted largely in borrowing millions in London each year, and spending them about the country so as to bring wotes at election time. It is not sur-

prising that our statesmen consider it highly important to do exactly what the Bank of England tells them to do, and it would appear that for somo years to come the real Government of New Zealand will be, not the elected of the people, but the Bank of England.