CONTROL OF EXCHANGE.
A few days ago we drew attention, to the inconsistency of the Government, in affirming that the Reserve Bank would be free from political control, and yet saying that it would givo effect to Government policy. This inconsistency was again displayed when the Minister of Finance replied to his critics on Tuesday. Mr. Veitch had emphasised the need for freedom from political control. If the new bank was to be given a free hand to fix the rate of exchange according to the trade balance, it would confer a great benefit on New Zealand, but the House had been assured that the bank would carry out the Government's monetary policy, "which was a false rate." The reports do not show that Mr. Coates met this criticism, but it must be met. If the bank is not to control exchange with a free hand, why set it up? "Above all things," says the "Evening Post" in comment on the debate, "a Reserve Bank should give security and stability, and neither is assured with a control which declares for free exchange in December and pegged exchange in January. A consistent policy, the foundation of confidence, is possible only with an experienced and untrammelled directorate." Assurance to this effect has not been given Jijr the Government.
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Bibliographic details
Auckland Star, Volume LXIV, Issue 259, 2 November 1933, Page 6
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216CONTROL OF EXCHANGE. Auckland Star, Volume LXIV, Issue 259, 2 November 1933, Page 6
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