CENTRAL RESERVE BANK

Gisborne Times, Volume LXXIII, Issue 11835, 17 January 1933, Page 4

CENTRAL RESERVE BANK

AFSTR ALLAN COMMENT

“Trading banks question the necessity for ihe establishment of a central bank in New Zealand,’’ says the “Australasian Banking Record.” “Before a reform is instituted, there are usually some grounds for reform, but looking at the position of New Zealand, and its banking history in particular,“it is difficult to discern any sufficient reason, for such a fn4i damental change as will bo brought about by the creation «»f a central bank.

“There has been no failure of any bank in New Zealand this country, and each of the institutions operating there is in a remarkably sound position. Cogent representations by the trading banks that a central bank for New Zealand is a needless extravagance. have failed to" have any effect, and the Government has introduced tile -Bill. ’’

After outlining the provisions of the proposed legislation, the “Decord” adds: “The question will "doubtless be fully explored whether a country of the dimensions of New / Zealand can afford, iu present oir- fV. cumstances. what has been referred to in banking circles as ‘tlie luxury* of a- ventral reserve, bank.’ 5

FARMERS OPPOSE SCHEME

(Press Association.! WANGANUI, Jan. 16.

At a meeting on Saturday *■ the Waimaritio County Council declared itself as opposed to the institution'‘of the proposed Reserve • Bank. : The Council unanimously resolved that the. Premier, the "Rt. Hon. G. W- Forbes, should be advised that it considered the institution of such a bank' is inopportune at present. f