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CRITICISM OF
BANK BILL
"Sledge Hammer
to Swat a Fly"
'rhe-Age"; Specie I Correspondent in London
."The Australian Government prefers to
Take a t sledge hammer to swat a fly and re-
. fuses to stop short of anything less than out
right nationalisation."
i.OTiiiimeht'Jis made 'in' "The ,
Statist" in an article-on- the na- 1
-tionalisatlon of .Ai)srra.li!in..b!uilc-s; j
£ 'It tin to-vci niif i flH)-(li al j
I qthrr "J more -5! (jlj
i.48). --la-.fi.'ibeoa
i tae'Et-an-OonU
on 'tji'1- Crnw-,1 >.»> -v".
ui.ru I'ilus tl.i. CJiiin.a.rv.iaar.,
it- is . surely an odd solution -to pre
sent to Parliament . a bill . .under
which it- assumes even morevcom-
prehenslve powers.
> "The crucial issue- for -Austra
lia should not be;, regarded-. as-= a
choice between privately owned
banks under rigia Government
control on the one hShd, .-.oiv-.a
fully nationalised - : banking -sys:.
tem on the oihei
"Elthei foim of legimented
banking -.would' .be., disastrous ::to
; i.hi»;healthv devfelonmcntrol Aus-
tralian - industry : on; .. economic-
lines. ' i i
"rpolltiealvand lpgah battles mow.
beiiig-.waged against:. tlie. -Banking-
Bill of 1947 ai e also battles
against the Commonwealth .Bank
Act', and the-. Banking:.: Act of
1945 ,
. "It is not merely the principle
of ownership, which.: is> challenged,
but also the- need for tne. present
extensive and enervating controls,
over banking. .
"What grounds then are there.
for .Mr. Chifley's . main . conten-
tion that the entire banking sys-.
tr-r -houJd lq 'cnrivTcJId u«
,l\e aiithorinp-- ' r
ill Sv ton cs> inly true tnit: the
JHIjjtauf If f bj" ;
vPkv, \ it,
jjjaul-t dp,, r-Eu'ated a.
centra). - 'bank -- working : :in ; close
collaboration - with- the Treasury;
even: if -noty-under public: owner
ship. t
-"But. there is all the difference
in-rthe world-'between regulating,
such -general: monetary/factors as.
the volume of - the- eurrencvor 'the
level of 'interest, rates, - aiul super-,
vising eVCry tran.snctlon ln whlclv
money: is' deposited tor advanced...
"In any - economy . liv , wlilch a
- cen tral .- .bank and . the 'Treasury"
-nre-pei-rorniing tlieir. proper :l'imc-
tlons;lhere-ls, in fact; little. -scope
foi liaging banks lo Infiueiui
general .'monetary oondiUtina."-:"-
, Chifley's Charges
it: "Mr. - Chifiey - charges i Austra
lian banks with having-JJed /the
boom and. promoted unsound .de-
V.clopment :in the -'twenties.'; This
charge has - never- been admitted
by -the banks,, but even if it were
valid it -might well be. asked- what
the Commonwealth and . State
Governments of Australia- did to
prevent -development of ; boom
conditions.
. "Conversely, Australian . banks
are charged- with -restricting ad
vances during - depression; This
charge is also/ unsubstantiated.
But be it ever, so true,- any-Labor
politician ; in this . Daltoniair. age
could , instruct -Mr.-; - Chifiey in
methods of making money - flow
mpre freely, whether ; there -is - a
depression to be fought or other
wise." says "The- Statist."
In lighting this battle, the -
Aiislraliau banks and their sup-
portcrs will - have tlic - good
wishes of all those In England-
and elsewhere who had not for-,-
gotten that it was under a sys- .
tem ot tree enterprise and mice--
strictcd lianking that Australia:
developed tier vast primary- in-. ,
dustries and, more latterly, her
not inconsiderable secondary in
dustry, "The Statist" . con
cluded.
$