PUBLIC DEBT

Nelson Evening Mail, Volume LXX, 26 September 1936, Page 14

PUBLIC DEBT

MANAGEMENT BY RESERVE BANK GO vEENMENT LOANS SERVICE TO PUBLIC TO REMAIN THE SAME (United Press Association' WELLINGTON, 25th September, An announcement that the Reserve Bank of New Zealand would assume the management of the public debt on Ist October, was made by the Minister of Finance, Hon. W. Nash, in an interview last evening. Notice of the requirement made upon the bank in this connection is contained in the Gazette issued yesterday. The Minister stated that provision was made in the original legislation establishing the institution whereby the bank, on the request of the Minister of Finance, should keep the New Zealand Register of Inscribed Stock and act as agent for the Treasury in the payment of interest and principal and generally in respect of the management of the public debt. “This arrangement,” said Mr Nash, “is in conformity with the recognised manciples of the usual functions of an institution of this: nature to undertake on behalf cf the Government the services which are incidental to or are reasonably associated with the raising of Government loans, the issue of securities in connection therewith, the discharge of the obligations to the holders of such securities, the keeping of records of all loan transactions and the accounting -for all the proceeds of such loans.”

The Minister explained that the Treasury officers at present employed on the special work involved would be transferring to the staff'd! the Reserve Bank, and insofar as the usual service to the public was concerned no material change would be evident from Ist October, be responsible for carrying on the work connected with Mew Zealand Government loans, and assume the position of registrar of Mew Zealand Government stock.' Correspondence and inquiries relating to individual holdings of Government securities should be directed to the Reserve Bank on and after Ist October, and not to the Treasury.