FINANCES OF EMPIRE

New Zealand Herald, Volume LXIX, Issue 21291, 19 September 1932, Page 11

FINANCES OF EMPIRE

CHAIN OF CENTRAL BANKS

SYSTEM HELD NECESSARY

ALL PARTIES CONSIDER POINT [by telegraph—special reporter] WELLINGTON, Sunday It. is highly probable that the Dominions, with Britain, will shortly give serious consideration to the establishment of a system of central banks for the better control of Empire finance: On his return from the conference to-day, Mr. Coates said that, although no formal resolutions had been passed on the subject, it was generally realised that a system of central banking was the only complete way to deal with exchange and other vital questions. Mr. Coates said he would have to confer with the Prime Minister, Mr. Forbes, on the point before any definite decision could be made concerning the establishment of a central reserve bank in New Zealand. Shortly after Sir Otto Niemeyer recommended that the New Zealand Government should establish a central bank a bill to give effect to the proposal was drawn up. It has never been introduced in Parliament, although the Cabinet has considered the question on several occasions. Having been advised by certain of its experts that, even if the present were not the time for the step to be taken, it would probably be found that it would be necessary before long, the Government had the question before it again some months ago. Action was then delayed until after the Ottawa Conference, in view of the discussion of Empire currency and monetary problems that were to be held there. In common with other Dominion Governments, New Zealand will review the proposal in the light of the Ottawa Conference.

Mr. Neville Chamberlain, Chancellor of the Exchequer, said at Ottawa that Britain did not see any prospect of a speedy return to the gold standard, nor was he prepared to say at what parity such a return could be effected. They were doing their best to prevent wide fluctuations in the value of sterling, cansed by speculative movements, and it was believed that effective machinery to that end had been devised. While desiring to see a stabilisation of exchange in the Empire, there were important features which rendered any prospect of the immediate establishment of stability somewhat doubtful.

TRIBUTE TO LEADER

SKILL AND JUDGMENT

WORK OF MR. COATES

[BY TELEGRAPH —SPECIAL REPORTER]

WELLINGTON, Sunday

'A tribute tc* the work of the Rt. Hon. J. G. Coates at Ottawa and his able leadership of the New Zealand delegation was paid by Mr. D. Jones, chairman of the New Zealand Meat Producers' Board, who accompanied the delegation as representative of the Dominion meat producers. He was not prepared on his arrival to-day to discuss particular agreements made between Britain and the Dominion. New Zealand was exceedingly fortunate to have Mr. Coates as leader of its delegation, said Mr. Jones. Because of his attendance at previous conferences, Mr. Coates knew personally most of the British representatives at the conference and that was in itself a distinct advantage. His long experience in public affairs in New Zealand, and his intimate knowledge of the difficulties of New Zealand's economic position, especially the difficulties of the primary producer, were a great advantage, because in the main New Zealand's requests were dealing with primary products. Mr. Jones said he would not discuss at present what had been given in return for what had been received, or particular agreements that had been made. Mr. Coates himself would be placing those matters before the public as leader of the New Zealand delegation. " I would, however, like to pay a personal tribute to Mr. Coates' work," Mr. Jones continued, " The New Zealand advisers were unanimous in their opinion that he dealt with all problems pertaining to Now Zealand with great skill and judgment, and that tho Dominion could not have been better served.

" When the full details are published setting out the agreements made between Britain and the Dominions, I am confident that New Zealand will share the view I have expressed and will gratefully acknowledge its indebtedness to the work of Mr. Coates," concluded Mr. Jones.