CONTROL OF CREDIT

Evening Post, Volume CXXVI, Issue 83, 5 October 1938, Page 23

CONTROL OF CREDIT

LABOUR'S PLAN

FATE OF BANK OF N.Z.

Taking up the statement made on Monday night at Berhampore by Mr. D. P. Hewlett that the New Zealand Labour Government would follow the example of the Lang Socialist Government, which had "pinched" the people's money from the New South Wales State Bank, and do the same with regard to the people's money in the New Zealand Post Office Savings Bank, Mr. R. 'McKeen, Labour candidate for Wellington South, said at Berhampore last night that the man who made such a statement was saying something that was contrary to fact.

"It is making a reflection on public servants," said Mr. McKeen. "Does anyone believe that the Government is going to steal the depositors' money? Under the Coates-FOrbes-Hamilton Government the Post Office Savings Bank withdrawals exceeded deposits by £8,700,000. They do not quote those figures to you. Under the Labour Government the total increase in deposits was £13,700,000. Now the Nationalists say that the Government is going to steal the people's money. Do these figures look like that?"

I Mr. McKeen referred to the refusal of Mr. Savage, when in England, to agree to the establishment of the gold standard. "They wanted a gold standard so that the banks could control the people throughout the Empire," he continued. "With two other Premiers, Mr. Savage held the matter up, and no finality was reached. Why are people fighting so hard to get a Labour Government today? When the Government took over the Reserve Bank it paid the shareholders tne market value of their shares at that particular time, and we are going to extend operations to control some of the other banks, too. We are going to contx-ol the credit and currency of this country. Rothschild said, 'Give me control of the banking system, and I do not care who has control of the Government.' The Government might have control of every seat, but if it leaves the banks in the hands of private individuals, the Government can do nothing at all. Banks are the power behind Governments and thrones. During the depression we experienced circumstances created by bankers. We do not blame the previous Government for a depression which was world wide, but we blame the bankers, who followed the instructions of bankers in other parts of the world. Two-thirds of the shares of the Bank of New Zealand are owned and controlled by the New Zealand Government. Why cannot we do in this instance what we did with the Reserve Bank? When the Government decided to buy out the shareholders of the Reserve Bank we simply paid out a cheque to each of the shareholders, to a total extent of £500,000, plus the premium on the shares at that date, and that is what is likely to occur to the Bank of New Zealand. "MORTGAGED TO BANKERS." "We are right. According to the news that is coming over the cables from, day to day, we are right on the brink of war. The nations of the earth are speeding up the manufacture of armaments at a terrific rate, and thai bankers are expanding their credit to enable them to do it. The nations are becoming mortgaged to the international bankers, who do not lose if war occurs, as they come into control of most of the industries. In 1935, 95 per cent, of the industries was in the hands of the banking institutions of this country. The statement is made that 97£ per cent, of the industries of the United States is owned by the banking institutions Of America. When desired, they put their machine into operation, and it has an immediate effect on the life of everyone in the country. Prices in different parts of the world do not fall of their own volition, but by the control of the banking and monetary system of the world.

"We will not do that. We can determine our own life as regards economic and social conditions, and we are going to control money to create actual wealth, and distribute it to the people after it has been created. We have gone a long' way towards that object. The Nationalists are out to smash what we have done."

Dealing later with figures which he said proved the increased production of wealth by the Government, Mr. McKeen said: "Does the employer come to us and say. 'You have created another £20,000,000 for us; come and take your share'? He does not, arid the Government realises the position."