CURRENCY LAW

Evening Post, Volume CXI, Issue 149, 26 June 1931, Page 14

CURRENCY LAW

RELIEF IN DEPRESSION

MEMBERS' QUESTIONS

The currency question was the subject of questions and a, private member's Bill, of which notice was given in the House of Representatives yesterday afternoon. Mr. C. 11. Chapman (Labour, Wellington North) intends to ask the Minister of Finance whether it is intended to institute inquiry into the question of currency for the purpose of ascertaining whether relief from the present depression can be obtained from some change in the law relating to the issue of currency. Mr. Chapman pointed out that there is no scarcity^of produce and goods in New Zealand, but that there is a pronounced scarcity of money. Mr. J. AY. Munro (Labour, Dunedin North) wishes to know whether the Government intends : to bring down legislation this session for the purpose of reducing the rate of interest on bank overdrafts and investment moneys. j REGULATING NOTE ISSUE. The first member to give notice of his intention to introduce a Bill, Mr. H. G. B. Mason (Labour, Auckland Suburbs) intimated that he will move to bring in a Currency Bill. According to an explanation furnished by Mr. Mason, the measure will provide for the regulation of currency note issue by an authority having a status similar to that of the Auditor-General, i.e., having security of office during good behaviour and being capablo of dismissal only upon vote of both Houses. TJio purpose was to secure that the amount of. 'lnoney in circulation should not depend upon I he policy of .commercial banks or the necessities of Government.Budgets, arid the statutory instructions to the authority would bo to secure that the average price-level of exported produce, which was taken as representative of prices generally, should^ 'be kept constant by increasing or jliininishing the amount of money in circulation whenever a change in price level indicated a deficiency or a surplus of circulation.