RESERVE BANK.

Auckland Star, Volume LXV, Issue 25, 30 January 1934, Page 9

RESERVE BANK.

PROSPECTUS READY.

APPLICATIONS FOR SHARES

DISTRIBUTION OF PROFITS

(By Telegraph.—Special to " Star.")

WELLINGTON, this day.

The prospectus of the Reserve Bank of New Zealand is to be issued to the public this week, and applications for £5 shares, of which there are 100,000, carrying a cumulative dividend of 5 per cent, open on Thursday. The list will close on or before February 15. The prospectus is a matter-of-fact statement of the functions and powers of the bank in line with the legislation. It points out that the initial reserve fund of £1,000,000 is provided by payment to the bank by the State, and that, after making the usual provision for bad debts, depreciation and other matters usually provided fior by banks, and the payment of 5 per cent on the private capital of £500.000, the whole of the remaining profits accrue to the State. The matter is subject to the condition that the general reserve fund must be not less than twice the paid up capital, which, as the prospectus indicates, will be the position at the commencement. The Reserve Bank is to he exempt from public taxation, but not local rates: The bank will commence business on a date fixed by proclamation, when it will be entitled to issue bank notes in New Zealand.

Tl'o prospectus contain* no information' regarding the bank's .staff or directorate.