THE RESERVE BANK

Evening Post, Issue 12, 14 July 1936, Page 12

THE RESERVE BANK

AUSTRALIAN OPINION

The Reserve Bank of New Zealand, according to the "Bulletin" (Sydney), has taken to itself, as a monopoly, a much larger slice of banking business than the Commonwealth Bank has done in Australia. The journal remarks that as from August 1 the private banks lose the financing of dairy produce exports; should wool and meat come under the Savage Government's guaranteed price and marketing scheme, the banks will be entirely deprived of their regular means of replenishing London funds, and will have to buy their exchange requirements from the Reserve Bank. Already the impending loss of exchange on daiiy produce exports threatens to make some of the Bank of New Zealand's branches and business unprofitable. "Thus, though sales tax collections were -up 13.7 per cent, last year and building and employment figures were better, the private banks cannot be expected to reap the share of benefits that have hitherto been their privilege. Many avenues of profit—through note issues, exchange, and Government business—have been closed or restricted."