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Reserve Bank Bill Causes Concern

Inf la'ion Feared by Businessmen (By Telegraph— Press Association) WELLINGTON, Oct. 14. The following letter was sent earlier in the week by the Associated Chambers of Commerce to the Minister of Finance, the Hon. W. Nash: — “The production by the Government of the Reserve Bank Amendment Bill, the nature of the provisions of the measure, the inadequate second-reading explanation of the intentions of the Government concerning the powers sought and the haste with which the Bill was put through all stages have all caused growing concern among the commercial community of New Zealand. “The reaction of the Associated Chambers of Commerce to the political control of banking and monetary policy was not, and is not, by any means favourable, but we made no protest against the Bill on its appearance pending your ghfcing an explanation at the point of the second reading as to the policy the Government proposed to pursue in the exercise of the powers sought under the Bill in order that we could view the Bill in the light of that explanation. Not only was there no interval allowed after the second-reading explanation for the measure to be weighed by the public, the Bill being .put through all stages during the night but that explanation, we respectfully submit, left many major questions completely obscure. “We would have thought that the objective of concluding the Parliamentary session by last week-end of smallest importance compared with the tneed for careful public consideration pf the extensive and dangerous changes [to the Reserve Bank system brought sabout by the Bill.

“That matter apart, however, since the measure has now been dealt with, what still remains of current concern is the fact that the fears engendered by the Bill because of its inflationary possibilities have not been dispersed, but rather have increased owing to the inadequacy of the explanation of Government policy given to date on behalf of the Bill and its powers. “Will the Government at this stage allay the deep apprehension which has arisen throughout the country by giving more explicit explanations on such important questions as:— “First, precisely how the funds for war purposes over and above those forthcoming from revenue are to be provided? “Second, to what extent it is considered by the Government that the reserve Bank credit can be used without inflating currency? “Third, what is the nature of the requests that were made by the Government to the Reserve Bank, but not met by the bank and which constitute one of the reasons for the promotion of the Bill? “Fourth, in short, how are the extensive powers which have been taken to be applied if not over the whole war period, the duration of which the Government cannot know at least for what immediate shortterm period which the Government must have fully estimated already in relation to the augmentation of war financing through the powers of the Reserve Bank Amendment Bill? As this is a matter of public concern S *! r 4 P °? e 5, andin S a c °Py of this letter to the Press for publication, and Zn, k° p * tl ?f questions raised herein S tte pubS“. Wlth information

Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/MT19391016.2.81

Bibliographic details

Manawatu Times, Volume 64, Issue 244, 16 October 1939, Page 8

Word Count
532

Reserve Bank Bill Causes Concern Manawatu Times, Volume 64, Issue 244, 16 October 1939, Page 8

Reserve Bank Bill Causes Concern Manawatu Times, Volume 64, Issue 244, 16 October 1939, Page 8

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