CENTRAL BANKING

Nelson Evening Mail, Volume LXI, 9 October 1926, Page 7

CENTRAL BANKING

SYSTEM WARMLY ADVOCATED (By Electric Telegraph.—Copyright.) (Australian & N./.. Cable Association.) LONDON, Oct. 8. The "Financial Times" gives prominence lo a cable from Sydney, in which Dr. Earl Page, interviewed, expressed gratification at the visit of Sir Ernest Harvey, Comptroller of the Bank of England. The paper says editorially: "The subject of a central reserve bank is almost sure to be prominent at the Imperial Conference. Dr. Page clearly perceives the mutual advantages which would accrue from the growth of central banking in different parts of the Empire and the co-ordination of a policy as far as practicable among constituent States. The benefits of a central bank may not always be obvious, and certainly will occasionally give rise to discussions which may throw doubt upon the wisdom of the steps taken. Nevertheless. the advantages are real anil valuable. A steady addition to Ihe number of central banks and increased intimacy of contract between them must make for si ability and Ihe cheeking of abuses such as speculative outbursts and soaring prices, which if left alone, might derange the working of the monetary machine."