RESERVE BANK OF NEW ZEALAND

Evening Post, Volume CXV, Issue 13, 17 January 1933, Page 6

RESERVE BANK OF NEW ZEALAND

JTo the Editor.) Sir,—The Reserve Bank of New Zealand Bill will soon be laid before our legislators for their decision. It has been my good fortune to read this Bill. Ib is truly an amazing document. Almost.the whole of the Public Works, programme is being held up for lack of funds, yet in. clause 10 of this Bill it states that the Minister of Finance "shall . . pay into the General Reserve Fund of the bank the sum ■of one million pounds." ' If we take "the words "create and issue Government securities" at their face value, it is made clear where this million is to come from in clause 11. There are some of my economist acquaintances who would term this inflation. Of course, this is not a new method of financing a country's public works. ■ -.-...■■

The point that many of us,would like a thorough explanation of is:—lf Government, securities are 'to be created and issued to finance a privately-owned bank, what _is the impediment against creating and issuing Government securities to finance the completion of such works as the Tawa Flat tunnel, Waitaki, etc., where millions of money are now lying dead, and where the creation and issue of a few thousands, of pounds of Government securities would revivify those "dead" millions into interest-producing concerns — I am, etc., , . QUO FATA VOCANT.