EMPIRE CENTRAL BANKS

Press, Volume LXIX, Issue 21024, 28 November 1933, Page 15

EMPIRE CENTRAL BANKS

COMMENT IN "THE TIMES" CANADA AND NEW ZEALAND Iraou cub own cobkicsi-omuiki'.) LONDON, October 19. "The Times" stales that the important declaration made by Mr Bennett, the Canadian Prime Minister, in favour of the establishment of a central bank does not arise from any dissatisfaction with the commercial banking system of the country. On the contrary, he holds a high opinion of it. Mr Bennett's advocacy springs from other considerations. He rightly holds that a central bank alone can provide the machinery for international monetary co-operation, and tnat it is needed 'if Canada is to be free from financial servitude. Mr Bennett's statement that he has no intention of endangering the stability of Canadian credit by resort to inflation will be welcomed abroad no less 'than at home by thoughtful business men, for Canada's problems are not likely to be solved by inflating debts still further, but only by adopting measuves which have proved successful elsewhere. Some apprehension (proceeds the city editor) has been manifest in London lately regarding the control of the New Zealand Central Bank, the bill for the establishment of which is now under consideration by the Government and the caucus. It, is feared ! that proposals to vest the control of :Ihe bank permanently in the govern- ! ment of the day may obtain serious ; support. The general opinion in New 1 Zealand and Australian banking circles ! is, of course, that such an important ; national institution should not be subject to political control, or to the vagaries and possible excesses of poll- : tical parties, but should be strictly j non-political in policy and in management.