PARLIAMENT.

King Country Chronicle, Volume VII, Issue 599, 3 September 1913, Page 5

PARLIAMENT.

COMMERCIAL BANK BILL. PUBLIC SERVICE COMMISSION. (uy Tiaiwiurn.—i*ess ashociation.J Wellington, Tuesday. The House met at 2.30 p.m. On the motion to consider the Committee's report on the Commercial Bank of Australia Limited Bill, Mr Ell raised the question of whether provision wbb made for the payment of gold for bank notes in any other centre than Wellington. He pointed out the unfairness of such a position if it obtained. Other banks, he said paid gold on demand at the four centres. The Hon. Mr Allen said provision was made in the Bill for the pamyent of notes at the office of issue or at Wellington. The provisions of the Bill safeguarded the interests of the people of the country. Sir Joseph Ward said, every bank operating in New Zealand made their notes payable in Wellington. They were always honoured, however, wherever presented. The centralisation of bullion was deliberately done to prevent any institution running out of gold at the time of a crisis which, happily, he added, was not possible in this country. Mr Malcolm informed the House that tho Committee which examined the Bill took every precaution to carefully consider its provisions. Mr Hindronrsh advocated the adoption of the Canadian banking system bore. There each bank was compelled to keep on hand a certain amount of gold. All bullion held against a bank's notes was handed over to the State, which gave a receipt for its share, and thereby got use of the gold for nothiig. Mr Millar advocated the taking over by the State of the whole note issue and the control of gold. Bank * should be compelled to buy gold from the State instead of from privato Deople. Mr Wilford said he had prepared a clause providing for practically free trade in banking as long as the institution's assets reserve were sufficient. The Hon. Mr Maßsey agreed with Mr Wilford's sentiments regarding free trade, but knew of no restrictions to prevent any bank coming to Parliment and getting authority to operate here. Mr Myers said any corporation w»n entitled to trade in thia Dominion under the Company's Act. At tho end of last June quarter the Commercial Bank bad a note circulation nf £1,714,159 and bullion, coin, etc., totalled £5,016,557. The Bill was then read a first time Reports of the Department. Labour Department;,', and Punlic Service Commissioners were laid on the table. Replying to Mr Hanßn, Mr Massey said an afternoon would be set apart for the discussion of the Public Service report within the next month. Sir Joseph Ward said dissatisfaction permeated the whole of the Public Service owing to the operations of the Public Service Act. If the system were good why, he said, did not. the Government apply it to the railways, which in a few years from now would control over fifty thousand people? One of two things would happen in the n»ar future. Either the whole of tho railways would have to be brought under the system or else the whole of the depßrtments at present under the commissioners would have to be removed from their control. Mr Mawsey, in replying, said application would never have a chance of removng the Act from the Statute Book. The people were quite satisfied with'and would never allow the state of influence and graft of a few years ago to BR-nin come into the Public Service. It had been asked why the railways and police and teachers we." , , not under the Act. Who, he as) J would sue.trent that touchers ft' M I uacrilice. th.i'' independence. I M ■ one advocated Unit before the elc. Pp '