GOVERNMENT BANK OF ISSUE AND MINT COMBINED.

Lyttelton Times, Volume LXI, Issue 7228, 30 April 1884, Page 6

GOVERNMENT BANK OF ISSUE AND MINT COMBINED.

TO THE EDITOR. Sir, —I maintain that neither Major Atkinson nor Mr Eolleston have given any satisfactory explanation upon the above subject, which is of vital importance to New Zealand. I now beg to offer a few hints showing the great value that may be attached to the proper, working of Jbhe two combined. Firstly, the mint to buy up New Zealand gold, to the extent, say, of .£250,000, to be paid for by the reserve fund, say, of the Government Insurance Company, or by special vote, and when coined, for every £1 gold, issue 50 paper notes, so that for the .£250,000 there would, be £12,500,000 to be made in Bank of Issue notes, part of which could be applied to go towards paying off our English liabilities, balance to be advanced up to two-thirds value of deposit to any wishing to work Government lands on the deferred-payment system at, say, 6 per cent, and also to do general banking business. I'he immense profits made by the different banks, showing dividends of 15 to 18 per cent, proves at once what a profitable business banking is. Again, we only borrow from ourselves, and keep all the interest and -profits in the country in constant circulation, which would render hard times like the present next to impossible. The Government would also have the power of fixing a fair ruling rate of interest. Also, in borrowing, a Bank of Issue would not be so harsh as the present banks, who are liable by the fluctuation of the money market at Home, to be told to put the screw on their constituents here after having nearly begged them to take it when money was plentiful. I know there will be a tremendous vested opposition from the rich, but I think the middle class and poor are beginning to open their eyes, if I may judge by the meeting of Saturday last. I hope some of more influence than myself will take up the cudgels in this matter. —I am, &c.» J. A. MORGAN. 222, Hereford street.