THE CENTRAL BANK
SYSTEM OF CONTROL SAFEGUARDS IN LEGISLATION [BY TELEGRAPH PRESS ASSOCIATION'] WELLINGTON, Wednesday At a meeting of the Dominion executive of the New Zealand Farmers' Union this evening fears were expressed that the proposed Central Bank might be controlled by financial interests. Mr. F, Colbeck said he could not see how the Central Bank was going to benefit the farmers. It was decided to leave the question in the hands of a special committee. The Minister of Finance, the Rt. Hon. J. G. Coates, wrote stating that the sole purpose of having private shareholders was to provide a nonpolitical franchise for the election of the board of directors. All authorities laid great stress on the point that thf» difficult task of controlling credit and currency should bo entirely free from the unsettling effects of politics. I£ the bill was carefully studied it would bo seen that adequate safeguards had been provided against banks or any other financial concerns obtaining control of the Central Bank through buying shares. In tho first instance, it should be noted that the shares must bo held by individuals, and companies could not hold shares. Secondly, shares were to be allotted in the first instance by the Minister of Finance and the voting power that might bo exercised by any one person was definitely limited. Shares could bo held only by persons ordinarily resident in Now Zealand.
A further safeguard would be found in the provision whereby not more than one of the directors could be a director of any other bank, while officers of other banks were not eligible for appointment. There would be no occasion to fear a reserve bank would be in any way dominated by the joint stock banks.
It was decided to ask Parliament to set up a committee to make full inquiry into the present monetary system. Mr. H. 0. Melsopp, of Auckland, said a monetary system could be put into operation which would get New Zealand out of her difficulties within six months.
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Bibliographic details
New Zealand Herald, Volume LXX, Issue 21471, 20 April 1933, Page 10
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336THE CENTRAL BANK New Zealand Herald, Volume LXX, Issue 21471, 20 April 1933, Page 10
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