RESERVE BANK DIRECTORATE.

Evening Star, Issue 21725, 21 May 1934, Page 8

RESERVE BANK DIRECTORATE.

The Act of last session for setting up the Reserve Bank of New Zealand provides for a Board of Directors, consisting of a governor, a deputy-governor, and seven other members, in addition to whom the Secretary of the Treasury is, ex officio, a member of the board, but not entitled to a vote. The governor and deputy-governor must be persons possessed of actual banking experience, and theirs are what are known as “ whole-time ” jobs, while in addition they are precluded from acting as directors in any other business or from holding any interest in. any other bank anywhere. These two gentlemen have already been appointed for seven years, and now the Minister of Finance announces the personnel of the seven other members of the board —one for a two-year term, one for a four-year term, one for a six-year term, and the remaining four for a five-year term. The order of retirement of the first three—designated as State directors—is to be decided by ballot, but we assume that reappointment by the Government of the day will be the rule rather than the exception. The idea appears to be that there shall be continuity of policy, and that the Government shall not be required to make an appointment oftener than once every two years. On this occasion the Government nominates the four “ shareholders’ directors,” one of whom is to retire in rotation annually, beginning about two years hence, but being eligible for election at the shareholders’ annual meeting, the term being five years. There is no embargo on any of the seven directors holding directorships on any other company, though not more than one of them may be a trading bank director. The chief inhibitions on these seven directors are that they shall not be members of Parliament, shall not be public servants, and shall not be bank employees. Their fees and allowances are to bo fixed at the annual meeting of the Reserve Bank’s shareholders. As between town and country interests on the board the Act stipulates that, of the four “shareholders’ directors,” two shall be “persons who are or have been actively engaged in primary industry,” and two shall be “ persons who are or have been actively engaged in industrial or commercial pursuits.” Under the former" category are Messrs James Begg and J. T. Herrick, both pastoralists. In the latter category are Mr E. Anderson, who incidentally owns a sheep station, and Mr Norton Francis, managing director of the well-known Canterbury stock and station agency, Messrs Pyne, Gould, Guinness Ltd. As Mr J. G. Duncan, one of the “ State directors,” is manager of Levin and Co., the well-known North Island firm of stock and station agents, it cannot be complained that primary producing interests have under-representation on the board. Of the two remaining members, one is Mr Richard Hudson, head of one of the largest manufacturing firms in Dunedin, and Mr D. A. Ewen, head of a soft-goods and footwear firm, with interests divided between importing and local manufacture. With the exception of Mr Begg, who has served on at least one Royal Commission, the list of directors contains no names that we remember as having previously been invited by the Government to participate in any capacity, even advisory, in tho shaping of the dominion’s destiny. But it is none the worse for that. Possibly the list does not contain one or two names that some sections of public expected to see included, but it may be that tho omission brings a feeling of relief to some of the more apprehensive or prejudiced lookers on, according to the point of view. As between North and South Island representation a proportion of four to three cannot be complained of by those in this part of the dominion who instinctively recall the geographical position of Cook Strait in such connections. If any particular industry appears to have been favoured in tho selection of the hoard it is probably tho frozen meat industry, for

Mr Francis is a director of the Canterbury Frozen Meat Company, and the work of Mr Jjunes Ilegg in connection with the South Otago Freezing Company is well known in those parts; and, as we have already stated, pastoral pursuits have liberal representation on the board. On the score of business and other experience the personnel of the board appears to be distinctly strong. We wish it a good start and harmonious and beneficial working in conjunction with the trading banks. And while congratulating the two Otago directors we also remember with pleasure Mr Ewen’s former association with this city.