PERMANENT BANKING LEGISLATION

Dominion, Volume 22, Issue 263, 2 August 1929, Page 14

PERMANENT BANKING LEGISLATION

SOME AMENDMENT NECESSARY Commenting on the fact that no date has yet been fixed for the termination of the special regulations governing banking legislation made in 1916 to meet possible war emergencies, the Financial Statement states: —Following the economic upheaval of the war, nearly every country in the world has found it necessary or desirable to amend their currency laws to meet the altered conditions. It is certain that some amendments to the permanent banking legislation will be necessary in New Zealand, as a complete return to pre-war practice is inadvisable, if not impossible. For instance, a return to a internal'gold circulation would be a luxury for which there is no need and no demand. Great Britain found she could dispense with it. The only authority for the ten- shilling note is the War Regulations. Since the outbreak of the war successive Proclamations have maintained banknotes as legal tender in New Zealand. The period fixed by the last Proclamation expired on January 10 last, and though desirous of repealing ,all war regulations as soon as possible, it was; considered advisable in this ease to maintain the existing position until such time as the permanent legislation governing banking can be overhauled. Accordingly a further Proclamation was issued making banknotes legal tender until January 10. 193-