A CENTRAL BANK.

Auckland Star, Volume LXIII, Issue 239, 8 October 1932, Page 13

A CENTRAL BANK.

Tlie setting up of a central bank as outlined by Sir Otto Niemeyer requires , some considerable thought. In the first place, is it to be a State bank or a bankers' bank ? If the former, the clause asking for subscription lists should be better defined. If the bank is to be run by the State, I contend that all deposits should be subject to a uniform'rate of interest. Profits made by a State bank should be spread over the whole community, and not to the few shareholders, as is the case under the present system of banking. Any profits could be used in relieving taxation. If the central bank is to be, as described above, a bankers' bank, who is going to foot the bill, for its inception and maintenance, which, with the large volume of national business, would be considerable? Twenty years ago or so the banks quietly acquired the gold and issued notes to replace it. Later on till now the banks have gradually acquired, to all intents and purposes, a controlling interest in 75 per cent of the large trading concerns, and farms, including house property, on the credit of this note issue. Now that the operations of the financers have landed them in a cul-de-sac, are they expecting the public to bear the cost of rehabilitation? Let us have a currency reform, but on State lines, in preference to bankers' lines, of which many of us, alas, have had some sad experiences. If the credit of the present banks is good enough for its depositors and other customers, surely the credit of a State bank must be far more secure, apart from the feeling of patriotism that should infuse everyone for the welfare of this beautiful country. QUID PRO QUID.