DANISH CENTRAL BANK.

Auckland Star, Volume LXV, Issue 142, 18 June 1934, Page 4

DANISH CENTRAL BANK.

REORGANISATION PLANS. A bill which came before the Danish Parliament Jast month provides for the reorganisation of the Danish Central Bank by the creating of a new bank, known as "Denmark's Bank" (Bank of Denmark), with an initial capital of kr. 50,000,000 put up by the Government in the form of a 3Ms per cent Government bond which shall do redeemable out of <lio profits of the bank. The new bank is to take over the assets and liabilities ot the Nationalbanken i Kjobenhavn, whose shareholders will receive two 4 per cent 27-ycar State-guaranteed bank bonds for each one share held (the yield of two 4 per cent bonds corresponding to the dividends of 8 per cent paid by the National Bank during recent years). There are to be three governors, one of whom is elected by the Government and acts as chief governor, while the other two are appointed by a Board of Representatives. The latter shall consist of 25 members, two ele-eted by the Government, eight by Parliament, and the remaining 15 by the Board of Representatives itself. There is further to be a board of directors, consisting of rive representatives, among whom will be the two representatives elected by the Government. The bank will enjoy the monopoly of issuing bank notes. There is no legal limitation to the amount of the note issue, but tho notes shall be covered by gold to the extent of 30 per cent. The operations ot the bank are to be supervised by the Government, and the profits—after allocation to reserves, etc.—shall accrue to the State. The arrangement will bo valid until 194S only.