CENTRAL RESERVE BANK

Press, Volume LXX, Issue 21119, 21 March 1934, Page 12

CENTRAL RESERVE BANK

CONFIDENCE OF THE PEOPLE MR W. MACHIVS OPINIONS The subscription five times more Hum the capital of £500,000 reciuired for the creation of the Central Reserve Bank of New Zealand showed the confidence of the people of New Zealand in the bank, and the eye of the investors in the Dominion for a good and profitable investment at the present time, said Mr W. Machin. when addressing the Christohuieh Parliamentary Union last evening. The system of central banking was growing throughout the world, and New Zealand was falling into line with the idea of having a central finance authority, speaking ■or banking i" Zealand. Mr Machin said. That bank would be •,ble to talk with one voice when n presenting New Zealand in overseas negotiations with the Bank of lnternatmnal Settlements, and tu the Dominion's large creditors overseas, to whom was owed a sum between e U.i 0.000.000 and .11200.000.000. Currency Revisions "There will be monetary remedies proposed, and v. e will look to the v.mdnm oi those who guide the destinies of the bank tor hgrtt on these problems. It is well known bow these questions have been considered alrtsh during the last lew years in a remarkable way. When the Maciuillan Committee met. its members looked with abhorrence oil anv suggestion to depreciate the currencv of Great Britain, and a ;uggtstod depreciation of 10 per cent* while it might be examined, vws unthinkable. Not long alter that Britain lell the gold standard, and her pound sterling was soon devalued to las. or 25 per cent, in gold. Since then the governments (": the world have apparently vied with each other m currency revision, and it is well knuwii how countries ha\ e devalued the unit oi currencv within their own borders. snorth 'after declaring against any such proposal."'