STATE BANK SCHEME

Dominion, Volume 3, Issue 887, 5 August 1910, Page 7

STATE BANK SCHEME

'ft vft DEBATE IN COUNCIL. ; jabUSE -DISCUSSES BUDGET. ON THE POLICE ■ '-■.'''• "■• ■•''.yi,V^': : ; .-;.'.■,. ;.;;... ;. '.' '. '■-;.' '.-■" .There:■was' nn"interesting discussion in ~ the '■-Legislative Council yesterday': after- :'- noon;'upon' a . proposal 'to set up a.;.,:Cqhiniittee .to inquiro into the •;.'■ question;. of ~a. -State Bank,... and • :a r State; :hote, issue, "jut it had not .coii- ', cluded' : wheu the adjournment was .taken. .;■.'. In'.fhe/'House'.the debate on 'tl\e .Finan- .. cial;., Saieinent". was . advanced .a „ further ' Btage. till'. last' night 12 member's ■ liad';spoken; Furthor references (which' ;'• are 'reported, elsewhere) were made; 'to ' the; - question.'. of ■'. " Tainmanyisni,", in "the of which .Mr. Hine . again asked.: that, -.a... Royal';. Commission ..should 1)9 set' .'up', to .inquire' into' tho' oircum- '.' Btances'surfpiihding;the purchase of' ; all , privato:.;'estates; by.;the.Government, It • iis : npwSconsidered /improbable that, the ':' debate:: conclude prior to the: middle' ~ .cf. nestiweek. ■■,'..'■ .-■ ;:■•' v --.yi.:y : - '-.NEW' BILLS. ;' ';'0:'••' '' . ' ThV'Legislative .Council resumed at 2.30 J.m'.,yesterday, ~.- :; .< . .: : :;- , The.Oaths Bill, Destitute, Persons Bill',; ~ ;!and" Crimes Amendment Bill were intror, ;_-duced-;by the Hon. DriTindlay and read ;i'a first time:-. The second "readings of the' 'first'ftp -Bills, werp ;fixed for tp-day, .;'ahd;,pf,:;tho, Crimes Amendment Bill 'for JTiiesday neit; .:-..'.. ■'•'■ -';}' STATE; BANK. [ "■■ ::,.:'■ The"-H6h. : J. 'RIGG .(Wellington); moved:' ':.;:. '"That.-a; committee be set up" to'-.cqu-or otnerivise of (i) .' ia.'State'-banli' of., and deposit,' auu' ■,"!(2) ;ii';.!jtfite';paper.'currency.i tne;commit-;tee-to;icpnsisc oi the lions. J.;Anstey, ,J,. :;B.'',Calfau,'Dr. Eindlay, J. E. ;Jenkinson,' 2 ;T;'JKeffyi ; .-0. M'.;-Luke, .W.'-.W. M'Cardlei 1 ; Hi .'■ii l ii>y!igraui,''.-'.and. -the : : mover, '.--'with :>p'6'wer:-)6'.'call,lor. p'erspns:and.papers, and v -to; "report'" during-the present" session', of 'j: Pdriiaiiient."'.-./ .;"' ; - ■ ! : : '' v ':,'v, ; ;;;.': ,:_The; niover" s"aid.,it.w'a;s"'gcheraliy'recpg-. i.'. 'riised.vihat' the..present, bankirg system ■';'.'.of ;.tlia' world was' entirely, unscientific'and. -.^unsound;-'.,lt hadj'been.!-;suggested..;that, ''ontitlier financial crisis 'jvas approaching ". ;i4' Ahnjj-icu,'.ahd:New' Zealand inight'liaTe' 'a •repetition,next'-year.V'of';the'"receiit.;de--■;^ression^.',drie'.l»:;ca^s*SA:6by6nd , '.'6ur''-.'bwn; f; : cp'utroi';: It.seamed-.'reds'omiblo.';to .Bup-' - pose-.that if;the';pre'sent, :! .baiiiing:sy.stem: ■■ was .liable' to. produce (periodical,. crises it' i ■ ~waS -- time"' something'. : bet:ter-.'was,:invented.-, : -:to takc;its.;place.'.r;-When;;a„-bank.-;-found 1 l.'itselfvin; trpuble-'it.'was; alvvays'supported,;/by- the.; State,, andi-hb''';asked:-; whyAthe'' State' should inot.'support r "an; institution .-. / of' its; .ojvn' and i endeavour ,to; prevent -the.; ':■■'■ depressions...: .which ;■:.occurred ;' in;; cdnse- .. quehce'- ; oi:;ari : i : ,In times' 'of;-.depressidh',.as; had been seen, ; . in .Neih.Zcaland:recently, Vthe banks, '■ which: were" commercial Institutions ..pure ■;■ and/.simple,.: squeezed'the -people., instead:-...of-.assisting,them,.ahi.so intensified-.tho ij-.evil.uHe believed, th'at.the, Bank.of New . which hadi'been assisted.by .the' •• been' the/.worst.sinner.:of the. '/:■ lot X-r-i'TVe: have; ■■ been V nourishing •; a. ~.;v iper;:-;:;.' in- '.our ;~'bosom-.-r- :; . now;;! •> in j ured''.; us;" ■."•• said ■';- Mr: ;;■ Rigg.' ; ; The.-re3ult::of "the: State; assistance-" ", tb\ th'e: ; .'hank-: had.-beenr to- f atteh-.'-utT:;a - .. number;'of greedy, (■ shareholders, ■?■ ivnoso' ;/■ appetite,for profits-was simply insatiable,; (•who .were.always crying out .for '> more,-. "; •ahd'i.iwho ihtended' ; to.>have,-morb,v; ').h\;. ':■,-'..''HnderrStatb: managementcpronts.;would;'..be:arse_condary,'cb"nsidcration of. the bank,. ;:. ahd-.tho benefit bfj."tue.'Dominion would-bo / the,:first consideration. He had, heard that-it would, cost' Jto'q"- much for the Statp ; tp-.acquirc the bank. -.If 'itwas.necessary. "fOr the; State to buy up.its own', interest in-the ; baiiV;it'would: take anenormo'us •:,'.'. sum.'bii.t if it was only, necessary, to' buy .:. out-:th'e;: half'million'invested ,;hy : tho , shareholders,'-that should hot bo beyond "tho. countr/s means.'V: It should bo taken. •,:over:!lit.'-a million'-pounds,' which would' ■::■ be'.a -fair priceUnJiis,opinion. There, .„. was' ;an; alternative,.: of /.which, .-/.however,' ■j; ho!did riot approve;.of allowing the share-: holders to remain.in the bank as share-;•'■holders;-:;with representation ;in the ;'management,- and-'take--: the' institution ,';pver. :,asj.'a Government, .institution..' It : ;;wbuld.. probably," bo '.necessary' 'then, . in, ; 'order.;to; prevent, the '.property becoming too Valuable,, te..fix;a-limit to the .value. .; ofithe'.share,-and also of the. rate.'bf. • interest ;that;'should';bo .paid od. it'.in ithe - ;:future.;;;The ; ..Bank of; New:'Zea]and..-was' •■ doing .well now, under State management,: /ijand-the.pnly. question was why should, the' ; 'State - carry passengers, ■ and ' nbt 'V only' ;;.,carry'.themj but fill' their- pocket's with ;;'go]d. 'The bank was paying well now,; i-and.would,,pay better;in the future.:/ Mr. ;, .'JJ'Bir,iwen't on,to argue in ■favoux.iof' a "State. currency.. Befoi^,-long,' lie'said-, ,;.;the, result would be seen of the experiment ' in /Australia, and tliat-should: guide New •;• Zealand, Half;a million notes niight'-bo .'„-usued;,with'out danger in' the .first-place, i,;he; .suggested, .for. the development -of ,: the '-water r power. : '" If a-' coin- ■ ; mittee.was appointed,-.:if; could obtain' -a -'•iSrw.dcal of useful, information on these :./.;.;,; .•.•■;•■,■.■;,•.■•, /.;■;;;.;. ;■:.,•-■;-■ ; ;the:Mbtioh;:SecondeaV';,' '~.■",'. ;'"'.'. :■'.'■'■; ,: said,.that., he would second 'tho "motion;-; .;;but,that did not'imply that he saw eye ;..W eye: with .Mr:.:Eigg.on- all points, or .supported: nil his'argument. ■' '"'' ";i [ '■ r M i ,?'"'' J - -B.'" Je'nkinson (Welling. ;.;ton), asked whether a motion shpuld not ,:ibe..seconded: by;a"'momber''who was-in ifavour.:of it,-. ',:•',;• : , ■;■ ';• :-7;.' • -:;.;Mr.-.Wigram:,;l; am 'in :favour of'the ■-.aosolution; p.-.:-......;-.-. •' '■-■'■ ■'.>• .-..■/ ,;;;-;.The'Spcake'r.;rulcd that a seconder need everything, in, a' motion. ' ~? fr -.:Wlsram'said .'that,, there, was n 0 :. $^JS-v K m( *i ol i, regarding the Bank' of 'New 'Zealand,,which, had. .been,-very--e f 7? th '; in^ r ' E Ws speechV - &-!?? m »<le.ite.bargain with the ,-bank ( when it came to its assistance, bargain./should .'..■ be,, respected; At .the..same fame.: nothing was then, said to prevent tho'State/from'startiiigva'.bank ■Jf ;lt the'; State decided to'db" ~ ihis,,it was only-fair/that it should■ re-' ilinquisli i fhe..share":J.t,:'now;'lia'd'.' in-the-' ' :Bank of Now Zealand,' which: would then become .'a hostile institution. 'Mr Wis. .Bmi- stated that'the net'profits 'of the ,bank-for- successive .years,-;-beginning'' at:a * Mi™ :-;£3U,329, JE334.881 , \£M9,m, i353,151V anaveraSTo, i-£330,000.a year, 'Outof that'-prpfit'l per icent;-Went tp, the ;guaranteed;'istock and ,10 per cent. tortho'State,leaving £240 344' ■jas .the,- average profit" which belonged'' to '-, :the; 'Ordinary 'shareholders of : the° bank „• njJlKdn, or. about 18 -per. cent. That;, was. what the share- ■ holders were to-day making—not 'dividine ' but.making. . Mr.'; Wjgrara dwelt 'with - gentle irony upon extracts which he'redd' from. a. pamphlet issued, lif the State Currency Association,-, and which he said .must, he; worthy of:. consideration,'; since an ex-Mmister, Mr. Hogg, was president of the association. There was great need .of f arhering information when, literature of this kind was being circulated through the length and .breadth of the land. . Other Opinions. .•./.'. ; *H'^\, C -'' l ?-'-' M P' l ', s ,.< WcUil 'eton)'' -prgeil.that Mr:.Kig g should be well sat- ' isfitd with the prosperity of -the .Bank' . of' Now Zealand, since the' State was a shareholder -'in it. '•' He thought that : if ■the eommittee. was set. up it. might ob- • -Min.yery. valuable.information, and.show, ■iiome. members of the .Council, how much ■they had-to learn about finance. ,;.:•./ - The; suggestion- was made, ...with.' 'DfV IPiiidlay's approval that the' name of the Hon. Tj.C. J..Stevens (Canterbury) should be substituted for.' that of the .Attorney-General ; in the motion. ■. ,; At .4. p.m. the. debate was .adjourned until when Dr. Findlav will Jjepb'lo Mr. Bigg's remarks^'