''MOST DANGEROUS"

Hawke's Bay Herald-Tribune, Issue 153, 16 July 1937, Page 8

''MOST DANGEROUS"

-Press Association.)

Natiosialisation of Reserve Bank MR. COBBE'S CRITICISM

(By TeleKraph-

PALMERSTON N., Last NighL "It is a great mistake to think that when a bank is nationalised its control passes into the han'ds of the people. It does nothing of the kind. It passes into the ' hands of a small group of politicians, who can, if they "wish, use its resources in party interests instead ef in the interests of the whole community." This statement was made tomight by the Hon. J. G. Cobbe, M.P., in an address at Apiti, when he reviewed several of the Government measures passed during the last session of Parliament. He described these measures as being of a far-reaching and disturbing eharacter, and referred to the Beserve Bank of New Zealand Amendment Act as being of "a most dangerous nature, and may ultimately have a very serious' effect upon the fmancial affairs of the Dominion. " The Prime Minister had not been very complimfentary to either the memories or the intelligence of the people of New Zealand when, on the eve of his departure for the Coronation, he boasted of an estimated increased . surplus for the past year, said Mr Cobbe. He oipitted to remind his hearers that that surplus, together with more than £4,250,000, came from additional taxation imposed * upon the people by his Government. He also omitted to mention that he • won hiseJection, .partly, on his pre:election statement, made in Christchurch, that "further taxation was out of the question." And yet, as soon as he had had the opportunity his Government had forced tthrough Parliament authiority to doftect additional taxation estimated at £4,460,585. Instead of boasting, the Prime Minister sliould have expressed regret that the estimated surplus was so small and should have explained where the rest of the money has gone. Eeferring to the Government 's power under the Eeserve Bank Amendment Act to regulate and control creclit and curreney in New Zealand, 'Ihe transfer of. moneys to and frtni New Zealand, and the disposal of moneys derived from the sale of New Zealand products and held for tlie timo being overseas, Mi- 'Cobbe said the' sub-clau.so was one of the most dan- « gcrous on the Statute Book. A man's money was not really under his control to-day. He might want to transfer £1,000 overseas, but the Minister of finance might forbid him to do so. A sheep-farmer might export his season '5 wool, but tlio Minister could say,how that man's money was to be dealt with.