The Reserve Bank

Dominion, Volume 28, Issue 112, 5 February 1935, Page 11

The Reserve Bank

Sir,—When the Reserve Bank of New Zealand Bill was before the House of Representatives, the fact was freely stated by protagonists of the Bill that the new bank when established would in no way be influenced oy the Bank of England or the Bank of International Settlements; that the Bill would not involve the transference of control of our financial policy to any foreign institution; that Niemeyer’s visit to the country was merely incidental to the proposal; and, in fact, that the measure was purely domestic and designed wholly for the country’s benefit. s However, now that privately-controlled central banks are established in all the Empire countries, including India and Canada, we find the governor of the Bank of England coming into the open and giving unstitnted praise to the Bank of International Settlements and making the definite statement that the purpose of this institution is to bring about cooperation among the central banks (vide extracts from a speech by him quoted in your paper recently). What is the purpose of this co-opera-ion, may we ask? Surely there is food for thought hero for our politicians who supported the Reserve Bunk Bill in the form in which it passed the House of Representatives?—l am. etc., Wellington,-February 2.