RESERVE BANK

Hawke's Bay Tribune, Volume XXIV, Issue 81, 17 March 1934, Page 10

RESERVE BANK

“ALL NEW ZEALAND” No Foreign Intrusion GOVERNOR’S OBJECTIVE The definite objective of the governor of the Reserve Bank of New Zealand, Mr. Leslie Lefeaux, who arrived in Auckland by the Rangitane from London on Thursday, is that the institution shall be entirely New Zealand in character, operating first and foremost for the benefit of the people of the Dominion. Although naturally unable to discuss detailed policy, Mr. Lefeaux, in reply to questions by an interviewer, said he wished it to be known at once that he was determined that the Reserve Bank should be entirely a New Zealand bank. “For that reason,” he added, “1 have come out to New Zealand without anyone from England, not even a secretary or a technical assistant. It is my considered opinion .that we should, if it is possible, commence, from the very beginning, as a self-eontained New Zealand institution. I am very anxious to be adopted as a New Zealander, and to do all I can for New Zealand.” NO EXTERNAL DOMINATION. Mr. Lefeaux said it should be understood at once that the Reserve Bank was not something that had been imposed on New Zealand from abroad. Nothing had been further from the minds of the people responsible for the project than that. For that reason he hoped that New Zealanders would always regard the institution as one entirely of New Zealand creation, to U> encouraged, admonished, or criticised, as occasion might demand, “I don’t want you to regard the bank as any foreign interpolator,” he continued. “As far as 1 am concerned, in carrying out whatever monetary policy may be laid down by the State, I shall always make it my utmost endeavour to direct the affairs of the bank for the people of New Zealand -as a whole. The very last impression which should remain is that the bank represents either foreign intrusion or is merely the instrument . of one section of the community. FOR COUNTRY'S BENEFIT. “The idea is that the bank should be entirely a New Zealand bank for the benefit of every section of the community in New Zealand. Please dispel any misconception that it is a branch of the Bank of England. I have completely severed my connection with the Bank of England. In the normal course there will be ordinary agents for our bank in London, and they will be very useful, too. Naturally, London being the centre with which you are most intimately connected, it is necessary for us to have the very best advice that is available there. I think the bank will be proved undoubtedly to be for the benefit, in the first place, of New Zealand, in the second place, it should help to make a useful link for the rest of the Empire, and, lastly, it will help to keep in touch with the rest of the world, with a view to ensuring, as f-a.r as possible, stability of prices and conditions generally. The order is: New Zealand first, the rest of the Empire second, and the world last.” Mr. Lefeaux, who is an engaging personality, is in his 48th year, and traces his British ancestry back for over 300 years. It was, of course, a condition of appointment that the governor of the bank should be British-born. Mr. Le. fea.ux is married and has one daughter. Mrs. and Miss Lefeaux are expected to arrive in New Zealand in about six months’ time. LONG EXPERIENCE. Mr. Lefeaux joined the staff of the Bank of England in 1902. In 1919 he was appointed assistant deputy principal of the discount office, and in the following year became assistant principal. In 1924 he left the discount office for a time to be first auditor, but returned in the following year as deputy principal. In February, 1927, he was appointed an additional deputy chief cashier. Especial interest attaches to the latter promotion, as it was believed to be the first occasion on which the position of deputy chief cashier had been duplicated. In November, 1932, Mr. Lefeaux was appointed to the newly-created position of assistant to the governor of the Bank of England. His new post relieved him of much of the routine work of the bank, and gave him greater freedom for the study of more general banking problems. Since the end of 1932 ho has had a wide experience of cen -al banking. NEW NOTES. It is learned authoritatively that banknotes to the face value of approximately £10,000,000 will be issued by the Reserve Bank when it commences business. The circulation of this issue will be for about six months, when the permanent design will be decided, and the permanent issue undertaken. The temporary issue will consist of the usual denominations —10/-, £l, £5 and*£lo. The notes are being printed in London. It is understood that the Minister of Finance considered the alternative of utilising existing notes of the trading banks with the Reserve Bank’s superimposition, hut rejected the idea on policy grounds. One of the first questions Mr. Lefeaux will have to go into on his arrival in Wellington to-day will be the selection of permanent accommodation for the bank and the engagement of i personnel. The offices of the bank will I be in a private building. There will be no branches.