RESERVE BANK

Ashburton Guardian, Volume 53, Issue 287, 15 September 1933, Page 5

RESERVE BANK

THE NEW ZEALAND PROPOSAL. APPROVAL IN ENGLISH PRESS. 'EMPIRE CO-OPERATION. (United Press Association—Copyright). LONDON, September 14. Referring to the proposal in New Zealand for the establishment of a reserve bank, the "Daily Telegraph" says that Mr Coates has done well to publish explanatory articles in New Zealand, in view of past opposition, especially from banking interests. The paper adds; "In Britain there will be general agreement with Mr Coates' assertion that such vital matters as control of currency and credit should not be left in the hands of the commercial banks. The scheme is framed on conventional lines, with proper safeguards to ensure immunity from political influence, and should also ensure sound direction of money and credit and the exchange policy and do much to facilitate co-operation with Britain and other members of' the Imperial family. The "Yorkshire Post" devotes a. long leading article to the subject, stating, inter alia: "The New Zealand proposal is to be welcomed. The social usefulness of commercial banking institutions will be increased, not diminished, by the existence of a co-ordinating body. The real objective of the reserve bank is to give the banking system an efficient rudder while leaving the engines of private enterprises to work unimpeded. The existence of a bankers' bank is required by a fullydeveloped economic system. Only by this means can a nation's banking resources be fully utilised. From the aspect of economic development of the Dominions themselves the movements to establish central banks are welcome.