NATIONALISATION OF BANKS?
Our Own Correspondent)
Rumour of Government Intentions
PRESSURE IN CAUCUS i \
(From
WELLINGTON, Last Night. A rumour is gaining ground in commercial circles that the Government intcnds to take steps tp assume complete control of the Dominion 's banking system. The form that this action will take is fairly well defined among those who purport to know, bnt official sources are silent on the subject, and refuse either to confirm or deny a suspicion that is gradually gaining strength. The feeling in some quarters is that the Government is not at all satisfied with the service that the private banking concerns are giving the community in the way of financial accommodation,, and that the Government is contemplating very seriously some form of legislative action. I The Prime Minister (the Rt. Hon. M. J. Savage) has said on moro than 1 one occasion that so long as the private •trading banks gave the facilities that the Government considered were adequate and satisfactory for the proper development of industry both primary jand secondary, it would take no action !to interfere with the system; but he has made it clear that if the banks did not give that service, then the Government would not hesitate to step in and take complete control of eredit, which is already partially controlled by the State-owned Reserve Bank. It is known that the whole question has been thoroughly considered by the Government, and the pressure is being brought to bear on the Ministry by the rank and file members to take some positive action. The appearance of a Bill in the House of Representatives to give effect t'o what is contemplated would not come as a surprise to those conversant with developments. In reply to inquiries the Prime Minister to-day said that he was not prepared to make any official statemeni one way or the other, but he did indicate that if the Government considered it necessary to take any salutary action it would not hesitate to do so»a ^ j
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Bibliographic details
Hawke's Bay Herald-Tribune, Volume 81, Issue 1, 24 September 1937, Page 3
Word Count
336NATIONALISATION OF BANKS? Hawke's Bay Herald-Tribune, Volume 81, Issue 1, 24 September 1937, Page 3
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