Labour Antipathy to Banks

Hawke's Bay Herald-Tribune, Volume 81, Issue 13, 8 October 1937, Page 5

Labour Antipathy to Banks

-Prpss Association.)

COMMENT IN HOUSE "Loose Talk Can D/ Nothing But Harm" THE BUDGET DEBATE

(By Telegraph-

W JULIjJJN (xlUJN , This Day. The debate on the Budget was resumed in the House of Eepresentatives to-day by the Hon. J. G. Cobbe (Nat., Oroua), whose speeeh had been interrupted by the adjournment last night. He stated that he found it difficult to understand the Prime Minister 's aa* tjpathy towards the private bankg, which were most useful adjuncta tb our present civilisation. Had it not been for them, private business and farming would not "be in the satisfactory condition they were in to-day. They .had been told, he said, that private .banke were not giving 100 per oent. service, but he would remind them that the* banks must be satisfied with the security and the honesty of would-be borxowers. The Opp.osition, Mr. Cobbe said, had no brief for the banks, but what it wai eoncemed about was the talk of commandeer of the banks by the Government. He personally did not thiifk that the Government Would do it, blit loose talk about it could do nothing but harm. He also stated that the placing of*the Eeserve Bank of New Zealand under political control was One thing that should have been. avoided by the Government. Mr. Cobbe asked the Government for its intentions with regard to interest rates. Was it preparing the way to repudiate interest? Eeal Test To Come. The Eev. O. Carr (Govt., Timaru)i said the real test of the Government and its policy wonld eome if there was a fall in overseas prices. It would be then that the Government. would be required to use the public cfedit to maintain stabiiity in the f armers ' in* eome and the standard of living of ths people. He attacked tha rising of the exchange rate, Which he classed as pute currency inflation. The Opposition, said Mr. Oarr, had upbraided the Government for taking credit for increasing the prices for our produce, but it had been definitely proved that increased spending power ineluded increased production, and th# Government took credit for increasing the spending power of the people. The Government, said Mr. Carf, coUld . see inevitable economie changes locming every where. The present monetary system was gradually' disintegratingi whether we liked it or not, and the Government 's task was to lighten the blow and make as easy as possible th# "period of transition. In this manner it was making proyision for the future. . The Administration, he said, had been aecused of Soeialism often border* ing on Communism, but he would point out that Soeialism was the principl# of Christianity in practice and was th# only thing to exorcise the devil oi Communism; Co-operation, he said, was another name for Soeialism. •Mr. W. A# Bodkin (Nat., CentriJ' Otago): Bunk. Mr. Carr: That is a typical interjection from tlie hon. member for Central Otago, whose speeehes are always permeated with, splutterings and explotions. Gontlnuing, Mr. Oarr said that th# use o£ the public credit was no new thing; it had been used by the past Government through the private banks until our public credit was hopelessly mortgaged. For the Government to use the public credit was to eiseate a credit instead of a debit. It was production for use aud not for profit.