NEW BANK NOTES.

Auckland Star, Volume LXV, Issue 27, 1 February 1934, Page 5

NEW BANK NOTES.

ISSUE ON AUGUST 1.

FEATURES OF THE DESIGN

"TYPICALLY NEW ZEALAND."

[ The Reserve Bank or New Zealand, ! under a proclamation gazetted tliis week, lias the right to issue bank notes as from August 1 next. These notes will take the place of the notes issued by the six trading banks. The Minister of Finance, the Rt. Hon. J. G. Coates, said in Wellington that in order to facilitate the commencement of the new bank's business temporary notes had been decided upon, which would circulate for a limited period only and be replaced later by the permanent notes. The principal features of the temporary notes were as follow: On the front, the value in figures, will appear at the four corners, surrounded by geometric white line work. The sides will be bound by characteristic Maori ornamentation, with rafter pattern for upper and lower borders.. A portrait of Tawhiao, the well-known Maori chief, will appear in oval frame on the right, and an engraving of a kiwi with a mountain background on the left. The New Zealand armorial bearings will appear in the centre, with the name, "Reserve Bank of New Zealand," above, and the usual promise to pay on demand below. The notes will be dated August 1, 1934. On the back, there will appear in the centre an engraving of Mitre Peak, 2<lilford Sound, with the name of the bank above in the form of an arch, and the value in words below. On either side will be a circle containing geometric patterns, with denomination in bold numerals in left circle. Denomination will also be shown promi-l nently in - the four corners. ... -

Mr. Coatee said that his aim had been, tc preserve the principle of the bank's notes containing' typical Xew Zealand features. The first issue of the Reserve Bank of Xew Zealand notes in the Dominion would mark a new and important stage in the progress of Xew Zealand finance. Union Bank's Issue the First. "Of the existing banking concerns, the Union Bank of Australia, Limited, was the first to issue its own notes, a branch of the bank being established at Wellington as early as 1840, by arrangement between the London directors of the Union Bank and the directors of the Xew Zealand Land Company, which institution was the primary influence in the colonisation of Wellington. As Xew Zealand was at that time under the jurisdiction of the Government of Xew South Wales, and the Union Bank of Australia, Limited, was carrying 011 business in that State, no special authority was necessary to expand its activities to Xew Zealand. In 1844, however, an ordinance was gazetted in Xew Zealand validating the position of the. Union Bank of Australia, Limited, as a banking company, and affirming its right to issue notes. With the exception of a few years during which the Colonial Bank of Issue was in operation (that concern being wound up in 1850), the Union Bank has therefore enjoyed the privilege of note issue from the earliest days of the colony. '"In 1861 both the Bank of Xew Zealand and the Bank of Xew South Wales were authorised by special Acts of Parliament to commence business in the Dominion, and to issue notes. The Bank of Australasia opened its first branch in Auckland in 1864. The next hank to commence operations was the Xational Bank of Xew Zealand, Limited, in 1872. Finally, in 1913, the Commercial Bank of Australia Limited Act made provision for similar rights in the case of that bank, which as a mattei of fact had been carrying on banking business since the previous year. "These several note issuingauthorities" Mr. Coates said, will aut° maticaliy be extinguished as from AnSt I 1034, and all notes then in circulation will be exchanged by the Sus banks for the new notes to be provided by the Reserve Bank of Xew 'ZealandL"