RESERVE BANK

Feilding Star, Volume 10, Issue 4033, 16 September 1933, Page 6

RESERVE BANK

GETS SUPPORT AT HOME STRESS ON SOUNDNESS A CO-ORDINATING BODY (Au?t and N.Z Cable) London, Sept. 14. Referring to New Zealand’s Reserve Bank proposals, the London Daily Telegraph say the lion. J. G. Coates has done well to publish explanatory articles in New Zealand in view of the past opposition, especially from banking interests, and a ids that in Britain there will be a general agreement with Mr. Coates’s assertion that such vital matters as the control of currency and credit should not be left in the hands of (he commercial hanks. The scheme is framed on conventional lines, with proper safeguards to ensure immunity from' political influence and should also ensure the sound direction of money an l credit and the exchange policy, and do much to facilitate cooperation with Britain and other members of the Imperial family, the paper adds. ANOTHER CRITIC The Yorkshire Post devotes a long leading article to the subject, stating. infer alia : "Tin* New Zealand proposal is to be welcomed. The social usefulness of the commercial banking institutions will Ik* increased anl not diminished by the existence of a co-ordinating body. The real objective of a Reserve Bank is to give the banking system an efficient rudder while leaving the engines of private enterprise to work en’mpeded The existence of a hankers’ bank is required by a fully equipped economic system. Only by this means can a nation’s hanking resources he fully utilised. From the aspect of the economic development o.* the Dominions themselves. the. movement to establish Central Banks is welcome.”