AT CURRENT RATE

Evening Post, Volume CXX, Issue 132, 30 November 1935, Page 10

AT CURRENT RATE

RESERVE BANK SHARES

IF LABOUR TAKES THEM OVER

(By. Telegraph—Press Association.)

AUCKLAND, November 29,

An assurance that the Labour Government did not intend to destroy the Reserve Bank of New Zealand or involve private shareholders in losses was given by the future Prime Minister, Mr. M. J. Savage, today.

If the Reserve Bank was to be taken over by the Government and made- entirely a State institution, Mr. Savage said, the' 500,000 shares at present held by private shareholders would be taken over at current market [rates. There would be no question of forcing sales at par and involving shareholders who had purchased shares at a premium, in a loss.

"It is not yet definite that we shall have to interfere with the present constitution of the bank," Mr. Savage continued. "We were opposed to it in its present form as we wanted a State bank pure and simple. However, we are not going to attempt to meet t trouble half-way, and I see no reason why the present Reserve Bank Board should refuse to work with us. Personally, I would welcome their cooperation.

"Our job is not to do an injury to anyone who has bought Reserve Bank shares, but to see that they are not losers by it. In consequence, if it becomes necessary for us to take over the private share capital, we shall pay for the shares at the current market rate. It- is merely a question of deciding what that rate will be, and in my • opinion it will possibly be the rate ruling at the date of the defeat of the last Government."