RESERVE BANK.

Auckland Star, Volume LXIV, Issue 252, 25 October 1933, Page 9

RESERVE BANK.

DEBATE OPENED. PURPOSES OF BILL. EXPLANATION BY MR. COATES. reply by labour leader. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. Tlie proposals of the Reserve Bank of New Zealand Bill were the subject of a full-dress debate in the House yesterday,, when, for a change, a good deal of fresh ground was broken. There had been four speakers lip to the adjournment at 10.30 p.m., but as urgency for the completion of tho second reading stage will be obtained to-day, the final participants will be addressing the chair in the early hours of Thursday morning. Although he spoko for two hours, the Minister of Finance, tho Hon. J. G. Coates, created an indifferent impression, allowing himself to be side-tracked by interjections, and making his points in a somewhat laborious fashion. At the same time, he placed sufficient on record clearly to indicate the purpose of the bill, which may be summarised as follows: — (1) To provide deliberate and disinterested control of currency and credit by a New Zealand board of directors for the benefit of the people as a whole. (2) To strengthen the banking system by consolidation and co-ordination under a central authority. (3) To provide effective machinery for carrying into effect any monetary policy decided upon, and for the pooling of banking reserves, which will not only give strength in the face of an emergency, but provide a safe basis for the expansion of credit if that is in the interests of the Dominion. (4) To afford substantial savings to the State and the commercial community through lower discount rates for bills, both Treasury and trading. (5) To enable New Zealand to take an effective part in any scheme for coordinated action on the part of the Central banks of the Empire for raising prices or stabilising currencies. (6) To provide the commercial convenience of a single, uniform note issue. (7) To make available to the Government, local bodies, and other financial authorities disinterested expert advice on monetary affairs generally. The speech of the Leader of the Opposition, Mr. M. J. Savage, flowed much more freely, although he had far less material to work on. His main advocacy was a reiteration of Labour's banking and currency plan, with the important addition that, in the event of his party assuming office, it would not control the system from the Cabinet room, but, after enunciating a policy, would require expert bankers to carry it out.