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Hokitika Guardian, 18 December 1933, Page 4

The Socialist plans for the nationalisation of the banks were criticised by Mr W. W. Paine, a director of Lloyds Bank, at a meeting of the AntiSocialist Union. Socialists must admit, lie skid, that, even during the troublous times through which we had been passing, the British banks, in contrast with what had happened in nearly every other country, had stood four square to all the winds that blew, and not one depositor ill them had had one moment’s anxiety in regard to his money. Clearly, then, there - was no reason on that score why they should be owned and controlled by Government, The reason must he sought elsewhere, in the Sociaist desire to possess and control these enormous funds, primarily belonging to depositors, in order that they might use- them for the purposes of -their own plans for finding employment and bettering the conditions of their working-class supporters, by financing all sorts of schemes for public works, and so on. That would involve a departure from the settled principles of banking. If depositors’ money was embarked on public expenditure, or used in granting loans of a. type which the banks would not already grant, that could only be done at the expense of the safety margin required to meet the claims of depositors. No doubt lie would he told, in answer to that:—“The depositors will be all right, because they will have the Government as owners of the hanks behind them.” That meant a dangerous inflation of credit and probably, in the ultimate result, of currency also, the inevitable effect of which would he to impair the credit ami financial position of the country, which was still one of our greatest assets as the leading country in the world. In the event of a Socialist Government being returned, with power to carry through their official programme of nationalisation of the banks and of industry, our whole position would again be thrown into the melting pot. Foreign balances would he withdrawn, all confidence would be destroyed, and the Government would be led into pile measure after another to prevent wholesale withdrawal of domestic deposits and the hoarding of currency. The whole financial position of fhe country would he thrown iirt> cVos, with enormous resultant injury to trade and commerce.