BOARD OF DIRECTORS

New Zealand Herald, Volume LXX, Issue 21639, 3 November 1933, Page 11

BOARD OF DIRECTORS

AMEN ])M ENTS DEFEATE. D shareholding provision NEW ZEALAND RESIDENTS [nv TELEGUAPI!—rRESS association] WELLINGTON, Thursday I ho Committee stages of the Reserve Bank Bill wore continued in the House of Representatives to-day, when several Labour amendments were submitted. When tho clause dealing with the constitution ol the board of directors was under consideration, Mr. F. Jones (Labour—Dunedin South) moved an amendment to the efleet tli.it the whole directorate should be appointed by the Govcrnor-General-in-Council. He said the object was to make tho bank a State institution. J he amendment was defeated by 43 votes to 21. Mr. \\ . ,7. Jordan (Labour —Manukau) moved an amendment designed to give voting power to the Secretary to the Treasury, who is a member of the board under tho provisions of tho bill. I he Minister of Finance, Mr. Coates, said tho Secretary to the Treasury would be in a stronger position if he was not compelled to vote. Tho amendment was defeated by -13 votes to 21. Mr. 1). \\ . Coleman (Labour —Gisborne) moved to extend to members of Parliament and servants of the frown tho right to hold office as members of the board. This was defeated by -10 votes to 21. The remaining clauses of the bill were then passed. At the instance of the Minister of rinance, rn amendment was made to the clause relating to the shares of the bank. A proviso was inserted restricting the issue of shares to British subjects who are ordinarily resident in New Zealand, or who, having been so resident, may, at the time of allotment, temporarily bo out of New Zealand for the purposes of their business or other sufficient reason. Mr. P. Fraser (Labour —Wellington Central) asked whether it would be illegal in the event of shares being listed on the Stock Exchange for them to be sold to any person other than a British subject. Mr. Coates replied in the affirmative. He explained that the amendment covered the point raised by Mr. 11. A. Wright yesterday. It was more satisfactory because it did not debar a person who might temporarily be absent from the Dominion for some good reason from holding shares. FIRST GOVERNOR OUTSIDE MAN LIKELY INDICATION BY MINISTER [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Thursday An indication that the first governor of the Reserve Bank would probably have to be appointed from outside New Zealand was given by the Minister of Finance, Mr. Coates, during the Committee stages of the Reserve Bank Bill in the House to-day. In reply to questions Mr. Coates said it might be necessary in the early years of the bank to look outside New Zealand for the governor. He shared in the genera] hope that it would be possible to appoint a New ZealarVler, but the question was whether there was any man in New Zealand with the necessary qualifications and knowledge of central banking. It is interesting to recall that when the South African Central Reserve Bank was established, the first governor of the bank was an Englishman. At the end of his first term, however, he was succeeded by the deputy-governor, a South African banker, to whom he bad been able to transfer his knowledge of central banking during their years of office together.