THE Temuka Leader. SATURDAY, JUNE 9, 1894. STATE BANK.

Temuka Leader, Issue 2670, 9 June 1894, Page 2

THE Temuka Leader. SATURDAY, JUNE 9, 1894. STATE BANK.

is just about twelve years ago since we commenced to advocate in these columns *he advisability of establishing a State Bank for this colony. Very little notice was, however, taken of it, until in 1884 Mr Twomey, as candidate for Gladstone, advocated it from the public platform. From that moment the subject began to be discussed. Numerous letters appeared in most of the newspapers in support of it; debating societies made it a subject for discussion, labor organisations made it a plank in their platform, and both the late Hon. John Bathgate and the late Mr James Mcandrew introduced it into both Houses of Parliament. In the Legislative Council Mr Bathgate carried the second reading of the Bank of Issue Bill, and in the Lower House Mr Macandrew carried a motion affirming the principle of it. The scheme, though new, had thus made a very fair start, but both its political fosterparents died, and interest in it commenced to wane. This was due chiefly to the fact that it was not understood. In every community there are a number of conceited successful men, who, by an assumption of superior intelligence, sway public opinion, at any rate, for a time when any new idea is suggested. It is impossible to convince such men that anything antagonistic to their preconceived notions can be right. To admit that anyone could know anything which they do not understand would be derogatory to their self-importance. They possess the money-making faculties, and are successful, and they cannot realise that those whom they regard as their inferiors can under any possible, circumstance suggest anything of any practical value. They do not know that the money-making faculties are mental attributes, which are seldom associated with the capacity for deepthinking and great reasoning powers. Who has heard of a great philosopher being a great money-maker ? We believe that no one has, and the reason is this : The money-makers concentrate all their thoughts on the almighty dollar, while the philosopher's turn on tracing the relations between cause and effect. It is obvious, therefore, that success in moneymaking is no test of a man's mental capacities in other respects, although by common consent it is accepted as the true criterion. At any rate, the successful man himself believes in his own superiority ; and as he.is, as a rule, selfassertive, and pushing, he succeeds in impressing on the thoughtless the conviction that he is right. Such men are the greatest impediments to progress, and will remain so till the end of time. History teems with evidence of of their obstructiveness ; no new idea was evei put before the public that they did not pooh-pooh, and amongst others they pooh-poohed the State Bank. They knew all about the South Sea Buble, the French Revolution, paper money, the American green backs, depreciated paper currency, and clinched it all with " you can't make people rich with a printing press and a bale of paper." And so interest in the State Bank scheme waned, and, seeing the utter uselessness of forcing it on an unwilling public, we have for some years ceased to advocate it. Events have, however, taken place during the last few yearß which have upset all the preconceived ideas of the conceited men. Great monetary institutions which had been paying enormous dividends, and which made a pretentious display of a colossal array of -"oh in their annual balance-sheets, "S lu - - one after another like houses toppled over. -celled in apparent of cards. They re. - „ iu £ d e wealth while they retained the o~ *"* v ; u of the public, but the moment the spiriof mistrust was let loose amongst them, they shrank from its withering touch. This was the crucial test, and low of them were able to stand it. We were fortunate in having the first of it iu this colony. The Bank of New Zealand had reconstructed before the panic set in, or we should not have escaped unscathed. It was most amusing to notice how readily the conceited men came round when they saw the institutions in which they had reposed unbounded faith, falling before their eyes, and creating woe and misery and ruin all round. The men who had hitherto scorned the idea of State interference with the currency now rushed to the Government for assistance. In Sydney the paper mouey of suspended banks was made a legal tender by Act of Parliament, and this most extraordinary action stopped the panic. In the other colonies somewhat similar steps were taken and thus confidence was restored by—what conceited men are never tired of condemning—State interference. The pauic of 1893 did more to advauce the State Ban k Scheme than all the philosophy, reasoning, and logic which have ever eminated from human brains could have done. It appealed directly to the special mental faculties of the conceited successful man', his ability to draw valuable cheques suddenly ceased, and as suddenly his conceit evaporated into the " stuff that dreams are made of." He appealed to the despised State for assistauc3, and the assistance came, and now he realises that it is the duty of the State to help those who cannot help themselves. Frequently during the previous years the State Bank question had been before the legislatures of Australia, but it was always pooh-poohed as a fad. In the very thick of the panic, however, a committee of the Now South Wales Parliament discovered, as if by inspiration, that a State Bauk was exactly what was wanted, and now overy Goverumout in Australia has the subject under consideration.

But there have all along been in this colony promiuoiit statdsmeu who believed in a State Bank. The late Mr Ballauco was a thorough believer in it, and, judging from a speech made by him in Parliament seven or eight yoars ago, Mr Soddou also bolieved in it. Sir Ilobort Stout in a debato in Parliament, said a State Bank mount that the noto issue would bo equal to a loan of .£1,00(3,000 a year without interest, so the two last Liberal premiers, and our present ono have all boon in sympathy wit.li the proposal. It may, therefore, be asked why is it that uoue of them introduced it I The auawor

is simple. Political leaders never introduce a subject until they find public opinion ripe for it. If they had introduced a State Bank, the conceited men and the money-rings would have raised the cry of a depreciated paper currency, the people would have voted against them, and they would have been ousted from office. The eyes of the people have now been opened; the time is ripe for it; and judging by recent ministerial utterances, the subject will be introduced into Parliament during the next session in some form. There is only one way in which it can be made a success. The right to issue paper money must be resumed by the State, but we shall deal with this point in a future issue.