RESERVE BANK

Evening Star, Issue 21633, 31 January 1934, Page 2

RESERVE BANK

SHARE CAPITAL SUBSCRIPTIONS STATEMENT BY MINISTER jl-PaK Uhitbd Puna Amociatiok.] WELLINGTON, January 30. , ’ The. announcement that the prospectus inviting subscriptions of the share capital : of the Reserve Bank of New Zealand would be made public on Thursday i, and that the list of applications would be'closbd on or before February 15, was made by the Minister of ■Finance . (Mr J. G. Coates) to-night. In making the announcement Mr Coates directed attention to the main features of the legislation governing the establishment of the Reserve Bank, the constitution of which placed it in the forefront as a national institution designed to maintain the stability of currency .and generally regulate the monetary System in the best interests of the dominion. The Minister stated that the original capital of the Reserve Bank was £500,000 in shares of £5 each, which were being offered at par for public subscription, and would be allotted by the Minister, of Finance in terms of the legislation. Not more than 500 shares would be allotted to any one person whether in his own right, or on behalf of any other person or persons, and the liability of every shareholder would be limited to the amount, if any, for the time being unpaid on the shares.

Mr Coates further stated that holding of shares in the bank would be limited to British subjects ordinarily resident in New Zealand, and the board of directors would he so constituted ns to obviate any possibility of the directorate being divided by sectional interests, thus ensuring the adoption and maintenance of the guiding control in the interests of the dominion as a whole.

Arrangements have been made for the prospectus and application forms to be distributed throughout the dominion, and these will be available at any banks or postal money order offices and from registered sharebrokers on Thursday. In addition Mr Coates stated that all citizens of the dominion have been invited by personal letter to join in subscribing for shares in order that the roots of the bank may be firmly planted throughout the country. The Minister indicated that he was very sanguine of success in this initial effort to raise the capital for New Zealand’s national institution, and that he was sure the people would respond in great numbers, not only through their desire to lie associated in the management of the hank, but also on account of be attractiveness of the bank’s share capital from an investment viewpoint.