THE CENTRAL RESERVE BANK

Press, Volume LXIX, Issue 20983, 11 October 1933, Page 7

THE CENTRAL RESERVE BANK

•TO THE *DITOS Of TDB P.REBS Sir, —Mr T. C. Hislop, in to-day's is«ue, makes a strong appeal for support lor the central bank. He gives instances of the time and place where such have been established, and quotes authorities who have advocated reserve banks, 'nd against this overwhelming evidence, he points out that we have only the private opinion of Sir Henry Buckleton. I prefer that of Sir Henry. The question is not "opinions" for or against, but whether reserve banks function for or against the general good. The decay of Britain began soon after the Bank of England took °n the functions of a reserve bank, To-day she stands second to America in materia] and to Russia in intellectual contribution to the world. Owing jo defective laws, the finance system nas • transferred more and more of leif Cl^' ts crea ted by industry to itoeii. These credits arc the creative so ar as money is concerned i5 e , blood, in fact, of industry. tJ.£ ve f)ac ' the building up of a op'heayy structure of finance. The ♦Jwi ® on6, weakened as they are, arl u " collapse, and frantic efforts r ll } s made t0 support it. That wnat I have said is so is shown by ste P s taken by President Roosethi a . . " is advisers. They recognise P° s 'tJon for what it is, and what toX are c '°' n S raiding tne financial rini ' anc l forcibly restoring to incredits which will enable it to tw i! 1 "- patient, weakened wl u inanition, is to be fed. Reserve pnil a l?- riot designed to meet a gentho ul3 ' IC need, but purely to make trsn 'I' 3 ? e 3sier and safer for the nsfer of all credits that they can, thfi i e c °" trol . of a men. and from Ti-i^ 0n i° ot ' those who create them, in? tm " ari ks are 011 a different footanri Cy , a, ' e a ne eessai-y adjunct. dktJu oir parl in production and "'stnbution of credits. i)inn V P sk Mr Hislop, as he chanieiww? bank, 'f he would be good bank ,? to show in detail that the in not increase costs, and also more ,->1 ay , wil ' assist industry. Mariv P5 rtlc ularly our primary ones. menMt, H 5 know w ' n >' the Govcrni2 Pushing the bill through. These , tublip^i„j do uot appeal to the ■ «f th» as they to the members , i ei So far - nothing has POSM & i. t0 show that the pro- ' thalr thf ha | ar »y other function , asking m>- mention ed. In : it will ,c -^ ;slor) to show in what way j I am st lnc 'ustry in New Zealand < by a desire to in- s elnuipi"® "ito an argument; I am 1 A? ba«-fcl y v ? nxious to know on what J o«vh)s support.—Yours, etc.. _ ; Governor's Bay, Octoffi, IM® J