A STATE BANK.

Dominion, Volume 3, Issue 836, 7 June 1910, Page 6

A STATE BANK.

SPEECH BY MR. HOGG, M.P. A meeting convened by .the New Zealand State Currency Association was held at Godber's Rooms last night. Mr. P. T. Moore presided over an attendance of between 20 and 30 persons, including several ladies. Tim chairman read a short paper, in which ho emphasised tho power of the Stato to create money -out of anything, or out of nothing, bv fiat, as it were. Mr. A. W. Hogg, M.P., patron of tho association, referring to the events of the time of his leaving the Ministry, said that he was glad to havo had tho opportunity of making a. sacrifice,, though a small one, which had started so hopeful and valuable a movement as that towards a State bank. He knew that tho movement would bo opposed by the wealthv, and those who were specially interested in the present financial system. New Zealand had prided herself upon leading tho world, but though she had much splendid legislation, the administration of late years had been a failure. He had no quarrel with the banks; they were exceedingly well managed, particularly for their shareholders. (Laughter.) Tho stalls consisted of admirable young and they would not be injured by tho State bank movement, for they were not too well paid, and might do better in other walks of life. Mr. Hogg wonton to argue from tho Advances to Settlers Department, tho Government's relations with the Bank of New Zealand and other facts, that the Government need go but a comparatively little step further to start a State bank. When money was wanted for public works, instead of issuing bonds to London usurers, the Government should issue notes to pay for the works, and not send interest out of the country. A man who earned .£1 by work for tho State would be able, to get .El's worth of goods or service for it by means of tho State's £1 note. Each year the State should call in 4 per cent, of the notes, and it would be surprising how soon the debt would be paid off. The interest on the national debt was a leak in- the ship of State which should bo stopped. He was afraid tho Premier's scheme of paying off the debt by means of a sinking fund was like a company paying a dividend out of an overdraft. (Laughter.) In paying off our debts, the first" thing to do was to stop borrowing. Our railways were being run for the benefit of oversea bondholders, and tho whole country was like a mortgaged farm, which wont on getting more and more deeply into debt. A State currency would enable all this to be altered, and would bring prosperity to all classes. (Applause.) Arrangements for a larger public meeting were subsequently discussed.