CENTRAL HANK

Feilding Star, Volume 9, Issue 3849, 4 October 1932, Page 7

CENTRAL HANK

PROPOSAL FOR NEW ZEALAND CRITICISM IN ENGLAND DIFFICULTIES OUTLINED (Aust. and N.Z. Cabl*) London, Oct. P. A Sun service message says that City people criticise the projiosal to establish a New Zealand Central Bank and consider that the absence of an international monetary standard makes il iuopportulie. They contend that, owing to the smallness of the population and the lack of an organised money market, New Zealand has no urgent need for a Central Bank, and that It will l>e difficult to control exchange and manage currency when it is not definitely known wliat the currency hacking will be. The taking over of tlie gold holdings of the local hanks will involve a controversy as they will not sell on the basis of the Bank of England’s statutory price when they can obtain more in the ojme market.