CENTRAL BANKS

Manawatu Times, Volume XLIX, Issue 3479, 15 October 1926, Page 10

CENTRAL BANKS

ADVANTAGES OF SYSTEM. AN AID TO STABILITY. LONDON, October 8. A cablegram received from Sydney, stating that Dr. Earle Page, Commonwealth Treasurer, hud expressed gratification in the course of an interview at the visit of Sir Ernest Harvey, comptroller of the Dank of England, is given prominence in the "Financial Times.” The newspaper goe s on to state that the subject of a central reserve bank is almost sure to be prominent at the imperial Conference. ' The mutual advantages which would accrue from a development of the system of central banking in the different parks of the Empire, and a policy of co-ordination, as far as is practicable, among the constituent Slates, are clearly perceived by Dr. Page. The benefits of control exercised by a properly functioning central bank may not always he obvious, and they certainly occasionally give rise to discussions which throw doubt upon the wisdom of (he slops taken. Nevertheless, the advantages arc real and valuable. Steady addition to the number of central banks and an increased intimacy of condact between them must make for stability. It would check abuses, such as speculative outbursts and soaring prices, which, if left alone, might derange the working of the monetary machine.