THE CENTRAL BANK.

Auckland Star, Volume LXIV, Issue 87, 13 April 1933, Page 6

THE CENTRAL BANK.

The passing of the remit by the South Auckland Farmers' Union in conference, condemning the proposed Central Reserve Bank Bill, displays a lamentable ignorance of the bill itself and the purpose for which a central bank is established, and the expressions of opinion by those supporting the remit show clearly that they either have not read the bill or they are quite incapable of understanding it and therefore remain ignorant of its purpose. This no doubt is due to the saturation of some of the farmers' papers with a tirade of abuse against a central bank, and in fact all banks, by those who have other fish to fry. If the farmers of South Auckland have become somewhat intoxicated by this dope specially prepared for them, then my advice is "Send a shilling to the Government Printer, Wellington, and get a copy of the bill itself and study it," and anyone threatened with intelligence will at once appreciate the value of the measure. You will see that the Hon. W. Downie Stewart's aim was to give New Zealand people a definite say in the future monetary policy of their country. Before the bank can come into being, the bill must be passed by Parliament, and, like all other enactments, must at all times be subject to the sovereign authority of the Parliament that created it. It is therefore ignorance or a desire to wilfully mislead the people that the suggestion is made in the remit that the Central Bank removes all control of our monetary system to outside influence. May I ask who outside New Zealand is interested in our currency problems? As far as I know they are all at present too much interested in their own to bother with other people's. Let those who talk in this strain tell us what advantage it would be to New Zealand to interest herself in, say, the monetary system of Australia, Mexico, or any other country. If you really could become seriously interested, would not self-interest prompt you to do itll you could to make that in which you are interested most efficient ? The bill, however, does aim at preventing for all time the currency being made the shuttlecock and battledore of party political interests, or preventing strong monetary interests exercising, through the monetary system, undue influence on New Zealand politics. From both party political or monetary influence the Central Bank .will be entirely divorced. Its great aim will be to see that proper banking facilities on the most equitable terms are amply provided by those whose business it is to render this service to the whole community. If the farmers in New Zealand will study the bill itself and not paper comments of it, they will appreciate this fact. Having said this, I think the bill might be slightly amended, and doubtless it will be. This would make it more acceptable to Parliament and the people, but it does not warrant the condemnation of the bill by the farmers, as I can assure them the Central Bank Bill is the finest piece of financial legis.lation offered to New Zealand by one of its ablest Finance Ministers. J. HISLOP.