NO PRESSURE

Hokitika Guardian, 23 November 1932, Page 2

NO PRESSURE

GOVERNMENT AND THE BANK

• REPORT DENIED. I ■ . ■ • •- Jy WEISyINGTON, November 21. The structions W , -#P||omiiisß- directors on the directoratepoF the Bank of Now Zealand a® tp*' w|at., attitude they should take up on the Question of exchange rates. This statement was made / to-night by Mr Forbes, to a direct question. A suggestionbeen fu4>ey made that as' the .Gqyerninent, through its nominee directors, is, "oka position to control the policy di, the ; bank, certain instructions. have been ' 1 given to representatives. 7 “Ihaven’t -seen the Government’s directors ;aiid, in; fact, -I don’t believe thiy are Vin Wellington,’’. said the Prime Minister ih;,:jefuting the report. .When the exchange credit podl was ;astablished in January last some confusion existed as to whether the Government proposed to control the rate of exchange. Although it wag officially stated thqt such was not the intention. it was pointed out by at least one financial authority that the Government could take command of the situation at any . time simply by OrderinfCouncil. It was learned to-day that one of the conditions laid down by the Government when it established the U£ool was that in the event of any one bank changing the rate of exchange during tji* currency of the restrictions ,it ,would be competent for the Minister ■of Finance to exercise authority to fix "‘lfie rate for all bank s trading in New Sljjealand.