The Monetary Commission

Dominion, Volume 27, Issue 144, 15 March 1934, Page 14

The Monetary Commission

Sir. —With reference to my evidence and strong objection given at the Monetary Commission, viz., that the New Zealand Reserve Bank should not invest New Zealand’s balances in sterling owing to the disastrous losses made by the South African Reserve Bank in so doing. Mr. B. S. Ashwin contradicted my statement. and was supported by Dr. Sutch. as reported in the daily Press here. Mr. B. C. Ashwin affirmed that Ins understanding of the South African position was that “any loss that that reserve bank incurred was due to the fact that the bank adhered to the gold standard when Britain went off it. and the loss was on the funds in London.’’ With all due respects to these gentlemen’s assertions, may I be pardoned in quoting, in support of niy evidence, Messrs. Kisch and Elkin in their accented authoritative work, “Central Banks.” On page 405 we read : “As 'the result of the suspension of gold payments by Great Britain, the (South African Reserve) Bank made losses on its holdings amounting to approximately the whole of its reserve fund and half its capital.” This bears out mv evidence.”—l am. etc.. P. E. TINGEY. Wanganui. March 12.