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NATIONAL BANK OF
AUSTRALASIA
State Control of
Banking Condemned
"It is interesting to note that the Australian
people have confounded ail the forebodings,
current in a number of circles during the war,
that afterwards there would be left a vast sur-
plus of unemployed people to be kept, in some
shape, by their? Governments." This statement
was made by the chairman of the National
Bank of Australasia Ltd. (Mr. H. D. Giddy) at
the annual meetina of shareholders vesterdav.
'Contrary to those feelings and
expectations, the chairman
added, private initiative and
enterprise had once more come
Inf.n t.Hofr nutm en efrmncrlv f.hflf.
there was very great pressure
upon the Australian domestic
labor market. Indeed, the most
serious shortage was workers-
people — lack of whom was com
plicating production in existing
establishments, and halting fur
ther, expansion everywhere.
Continuing, the chalraian said:
"These actual events are of. pro
found significance in relation ; to
one of the' supreme social .issues
of our day — the collision between
.those who advocate a -System of
tight State control and that large
section who demand reasonable
freedom for the Individual. .Cer
tainly, State control had its': run
during the war years, much" of
it then being inevitable, and there
are those who urge its perman
ency. But its marked effects upon
living standards and freedom of
activity are undoubtedly reviving
a determination by the mass of
people to be free to choose their
mode of life. , This is not. a new
phenomenon. In their long do
mestic history the British peoples
have periodically revolted against
those who would filch from them
their Individual rights and their
individual liberties.
Australian People
Awake to Change ;
"Even In our own land some
were pessimistic enough to feel
that the rigidity of war-time con
trols had dealt private initiative
and enterprise a blow from which
they might not satisfactorily' re
cover. But now, within the short
space of two years, private initia
tive and enterprise are primarily
responsible for our comparatively
.high level of prosperity. There
may be argument as to whether
we are more prosperous than ever
we- have been before, but all
shades of opinion will admit that
In relation to most of the other
belligerents of comparable size
and resources to our own our pre
sent standards of life and general'
economic well-being are Indeed
high.. And the Australian people
are never slow to appreciate such
changes of emphasis. There is
ample evidence that they are once
more fully awakened to . the fact
that adequate scope for individual
initiative and enterprise is essen
tial to national prosperity and
happiness.
' Government's Strange
Proposal
"Yet in the teeth of this re
awakening /we jiave the strange
spectacle of the Commonwealth
Government-placing - before Par
liament a proposal that could be
used for the most violent and in
tensive. control of the individual.
Whatever arguments the pro
tagonists of nationalisation of
banking may attempt to bring to
the contrary, the simple fact
stands that complete ownership
and absolute control of the bank
ing system by a Government does
mean that that Government holds
in the hollow of its hand full
power." over the finances of In
dustry and over the finances of
the people.
Communist Control
"There Is .nothing original
about nationalisation of banking
as a process 'by which the State
can gam control 01 eacn industry
and each Individual. It Is the
course which has been urged by
extreme Socialists and Commu
nists for many years. Wittingly
or unwittingly, the Federal
Government Is committing Itself
quite openly to a piece of Com
munistic legislation; of which
truth the Australian people would
soon become painfully aware If
this power were In the hands of
a Government that was unable,
or unwilling, to resist the pressure
of full-blooded socialists or the
Communist party of Australia.
Nationalisation and
Democratic Control
"I have said that we must have
an orderly monetary system con
ducted in the best Interests of the
people as a whole. In a modern
democracy such as ours, I also
admit unhesitatingly that the
general management of finance
and money properly comes with
in the scope of Government
policy.
"But there Is a vast gulf be
tween the orderly management of
currency and credit and the as
sumption by the Government of
complete ownership and control
of all banking, taking with It
complete control over the finan
cial affairs of every Individual
bank customer 'and placing the
Government in a position to con
trol the money of every member
of the community. The gulf Is so
great that It could very well,
mean, from the .point of view of
individual Australians, the differ
ence between retention of their
democratic" rights and liberties
and utter -subjection to the
State.
!
No Dictatorship
"I personally have no doubt
that, if and when they have the
opportunity, the people of Aus
tralia will express themselves as
totally opposed to this- gigantic
step. It Is so foreign to our spirit
of Independence and personal
freedom. Also, I feel the last
year has seen on the part of many
peoples a significant movement
of opinion against excessive con
trol by the State. The springs
of this revulsion lie deep in the
human heart, for though men
and women rightly seek protection
from the ravages of economic de-:
pression or economic exploitation,
they refuse to have their personal
energies and desires frustrated In
a vice of Government control and
dictation
Powers of Control
' "It is useless for the Prime
Minister to argue that the Com
monwealth Government does not
possess adequate powers of con
trol over the banks and banking
because of fears for the security
of the 1945 legislation. With the
exception of one minor clause,
which, let me emphasise, was re
jected by the High Court not on
banking grounds, but on . the
grounds that it was . Common
wealth legislation which discri
minated against the States, not
one word of the two Banks Acts
passed in 1945 has been chal
lenged or altered. They stand to
day Just as securely as they stood,
in 1945— Indeed, Just as the Na-.
tional Security banking regula
tions stood .from 1941.
"I wish to make special re
ference to the behavior of our
staff since the announcement of
v..„ o iinuunausauon
proposals. Not only have our
staff continued to play their in
valuable part in carrying on the
bank's affairs with cheerful en
thusiasm," said the chairman,
"but they have also displayed a
loyalty to their bank which has
never faltered. Their behavior
under the strain of the threatened
destruction of their chosen way
of life has been beyond praise.
It is,. I am sure, quite unnecessary
.for me to emphasise that their
attitude, towards the proposed
nationalisation of banking is the
attitude of free men and women
capable of thinking and acting
for themselves. Any suggestions
to the contrary are not only en
tirely untrue, but are an Insult
to one of the finest bodies of men
and women in the whole com
munity. .
Salaries and Benefits
"During the latter months of"
1946, special consideration was
given to the salaries of that large
section of the bank's staff sub
ject to clerical scales set out in
the various Arbitration Court
awards, and It was felt that the
rates of pay being received were
not sufficient to meet the chang
ing economic conditions. Late in
the year, the associated banks ob
tained the court's permission to
Increase rates, and these operated
from January 1, 1947. To cover
the increased costs in living for
the half year to December 31,
1946, your board agreed to the
payment on December 24 last of a
5 per cent, bonus to the staff.
. "It has been the practice of the
board for many years to make
payment of a grant to officers on
retirement on completion of long
service. Recently it was decided
to have that retiring allowance
conferred on the s'taff as a ser
vice right,, and provision has now
been made for the payment of
retiring grants on a scale rang
ing up to twelve months' salary
after,. 35 years of service.
Medical Benefits
/'In 'order- to remove the fear of
major' medical expenses, some
few; years ago a medical benefits
fund was . established for the
staff, and provision was made for
the' reimbursement to an officer
of. a .proportion of his outgoings
for medical and hospital expenses
on account of himself, his wife
or dependent children.- When this
fund was established there was
no experience on which to build
for benefit purposes, but having
run for three years, it has been
decided to Improve the payments,
which, inter alia, now cover cer
tain major dental costs. There
is ample evidence of the wide
spread satisfaction with which
the establishment of this fund
has been received by the members
of our staff.
Union Wifh Queensland
National Bank
"The most important happen
ing in the bank's activities dur
ing the past year was the cul
mination, in March last, of nego
tiations between the authorities
of the Queensland National Bank
Limited and ourselves for the
union of the businesses of the
two institutions. For a very long
time a particularly friendly asso
ciation had existed between the
two banks, and the time seemed
to have arrived when the best
Interests of the public, the staff
and the shareholders of both
banks would be served by com
plete union. Accordingly, on
March 26 an agreement was
signed providing for the taking
of Immediate steps to this end,
and the exchange of shares, of
which you have already been ad
vised, proceeded to completion
without the slightest hitch.
Asset's Exceed
£100,000,000
"During the year our deposit
and other liabilities item rose
by £5,934,515, bringing a conse
quent increase in our assets,
which now total £105,098,645. I
am proud to draw your special
attention to the fact that for the
first time in our history the assets
of. the bank exceed £100,000,000.
','The most striking increase in
the bank's assets was under the
heading of loans and advances,
which now stand at £43,419,249—
an expansion for the year of
£10,635,068. This strong demand
by Industry for banking accom
modation has/ to a varying de
gree, been common to all trading
banks.
"The increase for the year was
spread as follows; — Agricultural
and pastoral, 1.8 per cent.; dairy
ing and farm yard, 10. All pri
mary industries," 11.8; commerce,
31.5; manufacturing, 18.6; hous
ing, .0.5; construction and power
5.4; transport and communica
tion, 2.6; finance, 3.1; Govern
ment and public bodies, 2.5; all
other 15."
Bank Officers Will
Fight Legislation
The chief manager (Mr. L. J.
McOonnan), ' speaking on the
banking legislation, said bank
officers throughout Australia.
20,000 of them; had been dumb
founded when, without a word of
warning, they heard that their
chosen way of life was to be de
stroyed jind that, willy-nilly, they
were to be conscripted into the
service of the Government.
Career prospects and cherished
ambitions were to be dashed to
the ground without the slightest
opportunity being given for de
fence. It was an amazing thing
for a Labor Government to de
liver such a staggering blow to a
large and Important section of
labor, without the slightest con
sultation or consideration of feel
ings. .
No one could Imagine the
Government daring to take action
in the coal industry without con
sulting the miners. But there
we're just as many bank officers
as there were "Coal miners, and, if
there be such a thing as fairness,
bank officers were entitled to
equal consideration.
If the Government thought
that bank officers, as a scattered
body, would be Inarticulate and
of no political Importance, and
accordingly an easy victim for
State control, It had made a
grave error. In every city, town
and village throughout Australia,
bank officers had risen in violent
protest, and, let it be clearly un
derstood, would carry the fight
for their own freedom and that of
others to the bitter end.
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