New Guinea

No Private Banking In New Guinea One Angle of Australian Socialist Policy

rE reported refusal of the Australian Government to permit the Bank of New South Wales to re-establish its branches in Papua and New Guinea has aroused anger and indignation among residents of the Territories who, despite Canberra clap-trap, still believe in sys tems based on private enterprise and healthy competition.

Before the invasion, two banks operated in the Territories—the Commonwealth Bank and the Bank of New South Wales The Commonwealth Bank was not then a Governmental instrumentality, as it is to-day; and so private business was divided between the two.

Now, because the Socialist Government of Australia sits right on top of the Commonwealth Bank, and because that Government is so hostile to private en terprise and the encouragement of the profit motive, the residents of the Terri tories are most reluctant to put their private business through that institution.

Yet they have no alternative.

All old Territorian clients of the Bank of New South Wales had confidence in the Bank, and spoke well of the treat ment they received. They had no hesi tation in trusting their banker, just as they trusted their lawyer or doctor. They have had such a rough handling by bureaucrats during the war that they are not likely to trust, in the same way, the bureaucrats’ bank.

It was indicated in the beginning that Mr. Ward, as part of his plan for socialis ing the Territories, would not permit the reintroduction to the Territories of the big merchandising firms, the shipping companies and the private banks.

The big firms have been allowed to go back, but they are more or less ham strung by their inability to control trans port, by the shortage of native labour, and by the fact that the Production Con trol Board receives and handles all pro duce.

But the control of Territorian shipping, both coastal and overseas, remains com pletely in the hands of the Australian Government; and so does banking.

There can be no progress worthy of the name in the Australian Pacific Territories while these conditions last.