N.Z. RESERVE BANK

Hawke's Bay Tribune, Volume XXIV, Issue 77, 13 March 1934, Page 4

N.Z. RESERVE BANK

THE NEW COINAGE Historical Importance NEW ZEALAND'S PROGRESS “These are two things at present quietly taking place in our midst that will in future years be regarded ag matters of historical importance,’’ saifl the Rt. Hon. J. G. Coatee, Minister of Finance, speaking at the Rumen Show on Saturday. “One ia the establishment of the Reserve Bank, and the other the issue of our own coinage. These are both part of the equipment of every fully fledged State, and their establishment is a part of our growing feeling of nationalism as New Zealanders. “The necessary steps for the establishment of the Reserve Bank are now in hand. The flotation of capital was an outstanding success, not only from the point of view of the amount of subscriptions received compared with the limited amount of capital required but, what is more important, from the point of view of the number of people who made applications for shares. Aa a result it is now definitely assured that the roots of the Reserve Bank will be deeply imbedded in every economic activity of the Dominion and this itself will go a long way toward making the bank a truly national institution. “It is, of course, vitally important that it should be a national institution acting in the best interests of the people as a whole, for its function is broadly to exercise conscious and deliberate control over our monetary system, a matter that vitally affects in one way or another everyone in New Zealand. “One function which the Reserve Bank will exercise is the limitation of interest," continued the Minister, “and there is nothing of more import, ance to the farming community than the problem of meeting its responsibilities. I think that I am quite safe in stating that from now on you will see a gradual but steady reduction in the rates of interest, especially to the farming community. This will be the result of the working of the Reserve Bank and will result in vastly relieved conditions with the eventual result that the farmer will find himself once mora engaged in a payable industry.” Touching upon the New Zealand issus of silver coinage, Mr. Coates remarked: “As a separate member of the British commonwealth of nations, it is only right that we should have a distinctive coinage, and it is worth noting that there will be a relief to the general taxpayer by reason of the very handsome profit from the coining which will go into the general accounts of the Treasury. The full range of coins haa not yet come to hand, but within a few months the change-over should bw quietly and systematically completed.”