CENTRAL BANK.

Auckland Star, Volume LXV, Issue 46, 23 February 1934, Page 7

CENTRAL BANK.

PUBLIC INSTITUTION. Legislation Introduced in Canada. PURCHASE OF ALL GOLD. (United F.A.—Electric Telegraph—Copyright) (Received 1 p.m.) OTTAWA, February 22. Following closely the lines laid down by the MacMillan Koyal Commission, the Government introduced legislation to-day for tTie creation ol' a. central bank, to be known as the "Bank of Canada," the capital stock of which will be publicly owned. The legislation provides that the bank shall have the sole right of note issue, subject to limited circulation, by chartered banks which, however, will not be deprived of their note issue privileges immediately. From year to year they will be required to redeem notes until per cent is retired by 19-15. The new bank will gather o itself all the gold resources of the chartered banks ait the price of 20 dollars (Hi cents an ounce. The legislation also gives the Government power to require the transfer to it of all gold privately held in Canada. A resolution for the establishment of the bank has been approved and now goes to the Banking and Commerce Committee of Parliament.