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Friday, 18 November 1927

In committee(Consideration resumed from 17th November, vide page 1535).

Clause 8 -

Section 35 of the principal act is repealed, and the following sections are inserted in its stead: - 35w. The savings bank may invest any moneys held by it: -

Upon which Senator Lynch had moved by way of amendment -

That after paragraph d, sub-section 1, the following paragraph be inserted: - (dd) in advancing money for the purpose of encouraging gold-mining in the Commonwealth."

Senator KINGSMIIL(Western Aus amendment may seem of a somewhat revolutionary nature; but I do not think it can be regarded in that way. I look upon the powers granted to the Commonwealth Savings Bank very much in the same way as I do the articles of association of a company. The powers given to companies under their articles of association sometimes appear somewhat wide of the object for which a company is formed. Companies are formed for certain purposes; but under their articles of association they are able to deal with- matters which are not suggested by the name of the company or the object for which it is formed. It must be so in any commercial undertaking, because the ramifications of business, especially banking, are so great that no one can accurately prophesy the nature of business it may be desirable to undertake. Representing as I do a State which still produces more than one-half of the total quantity of gold produced in -Australia, I consider the amendment of great importance. I intend to support it, because I think the bank should have this power which should be exercised, it is true, with the utmost discretion, in the direction indicated in the amendment. The West Australian Bank did a good deal of business in the direction Senator Lynch suggests, and came out of its transactions remarkably well.

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