NEW BANK NOTES

New Zealand Herald, Volume LXXI, Issue 21868, 2 August 1934, Page 10

NEW BANK NOTES

FIRST DAY OF ISSUE CIRCULATION BY TELI.ERS INTEREST IN THE DESIGNS ABSORBING OLD VARIETIES The distribution by the banks yesterday for 'the first time of the new Reserve Bank notes occasioned a fairly lively interest on the part of the curious, although the recent introduction of the new silver coinage had accustomed the public to the novelty of changes in old and familiar tokens. Tellers at the banks commenced to issue the notes the first thing yesterday morning, retaining all trading bank notes paid in for withdrawal from circulation. A substantial number of the new notes, considered impossible to estimate, was thus placed into circulatior,!, as in addition to the usual volume of business many curio hunters presented old notes to be changed. Routine Hot Affected The routine of the banks wans in no way affected and business proceeded in the normal way. The process of changing over to the new issue will be continued in the same manner, but how long it will take to complete is a speculative matter- It is anticipated that even when the normal number of notes in circulation is of the now variety, stray specimens of the old types that have not found their way to the banks will be encountered. A few cases were reported yesterday of new notes being received as change by shoppers with a certain amount of suspicion. It was not a very difficult task to convince the recipients of their genuineness, although in one instance it was stated a new 10s note flatly refused. \ Of equal size, the Reserve Bank £5 £1 and 10s notes are a shade larger than the old notes. The colour of the £5 notes is a bluish green. In the £1 notes mauve is retained as the predominating colour, but the 10s notes are of a bright terra cotta. In each case the centre background contains effects of pastel shading. The designs are the same except for thei flanking details of carved panelling and the top and bottom marginal designs. Some of the figuring on the back of the £5 and £1 notes is expressed in lettering on the 10s notes.

Possibility ot Confusion The view has been expressed that sufficient distinction hau not been made between the colouring of the £5 and £1 notes, and that confusion i:j likely to arise. While the notes are new there seems no fear of a mistake being made in the 'denomination, and even when they become old it seems cloubtiful whether, with ordinai-y care, there vnil be room for error.

The design on the front of the notes embraces a kiwi, the New Zealand coat of arms, and the head of the second Maori "king," Tawhiao, which is a representation inferior to the wellknown one on the Bank of Now Zealand notes. It is understood, however, that the present design of the new notes is only a temporary one. On the back is a picture of Mitre Peak in an oval frame.

Across the top of the front, In large lettering, is the caption "The Reseivo Bank of New Zealand," while beneath the coat of arms is "'the "fdlli^ing", : Varjf** ing in wording only'as regards the denomination of the note: "Promised to : pay on demand in Wellington the sum of one pound pursuant to the Reserve Bank of New Zealand Act, 1932!." Some of the old trading bank £1 notes contained the word "sterling" after the words "one pound," but this does not appear on the new notes.

OPEN FOB BUSINESS i RESERVE BANK'S FIRST DAY [by telegraph—OWN correspondent] WELLINCrTON, Wednesday The Reserve Bank of New Zealand opened for business to-day and with its operations a new era in banking in the Dominion commenced. The bank's premises are in the Dominion Farmers' Institute Buildings. The primary duty of the bank as defined by the Act of last year is "to exercise control within the limits conferred on it by this Act over monetary circulation and credit in New Zealand to the end that the economic welfare of the Dominion may be promoted and maintained." From the point of view of the general public, the first outward manifestation of the functioning of the Reserve Bank was tne issue to-day by the trading banks in every town in New Zealand of its new notes.