CENTRAL BANK

Hokitika Guardian, 25 October 1933, Page 5

CENTRAL BANK

BILL IN HOUSE . MONETARY INQUIRY SOUGHT. (Per Press Association Copyright.) \VELLINGTON ; October 25. Ju the House oi' .Representatives yesterday oil the motion of the Pre--1 111Ier (the Hon. G’. W. Forbes), the • Speaker was directed to issue a war- [ rant for. a writ for the bye-election in the Builer electorate in the room of , the late Mr H. E. Holland. The Hon. Adam Hamilton gave notice of his intention to introduce the Rent Restriction Bill. Mr F. Lye (Govt., Waikato), presented a report of the public petitions committee on - twenty-five petitions, praying for an examination, into the present monetary system, and possible alternatives, with a. view to such Government action as might meet the national requirements. The committee in recommending the petitions to Government for favourable consideration, also recommend that the Parliamentary select committee be immediately set up to conduct a full and open inquiry into the present monetary systems, and possible alternatives to it.

Mr Lye stated that the committee’s decision had been unanimous. It had beeu felt that a Parliamentary com* mittee would be quite competent to meet the wishes of the petitioners. Moving the second reading of the Reserve Bill of New Zealand, the Hon. J. G. Coates said that tho Central Bank would assist and improve the normal financial operations of the Dominion, the community, and the Government, and would be helpful in a time of economic abnormality. It would (provide cheap (and 'abundant credit in periods of low prices, and would be an influence in restraining speculation and unwise lending in boom times.

The Miister said that the four main advantages of the reserve bank were: The control of our own monetary system ; the co-ordination of the hanking system; cheaper credit to the. community; and a saving to the State. The Leader of the Opposition said that the Minister of Finance had stated he could see- no alternative to the present banking - system. Mr Savage agreed that there was not much wrong with the present system, apart from the manner in which it was controlled. The bill would seem to be strengthening the present financial dictatorship although the great body of on ini on in New Zealand to-day was asking for quite the reverse of financial dictatorship. It seemed that the bill was going to be made an excuse for perpetuating the private control of the monetary system. He asked whether it would not be a better thing for the community if the state were to own and control the whole institution. All the peope of tlie Dojninon would then be shareholders. The debate was interrupted when the House rose at 10.30 p.m,