RESERVE BANK

New Zealand Herald, Volume LXXVIII, Issue 23928, 31 March 1941, Page 6

RESERVE BANK

VACANT GOVEBNOBSHIP NO IMMEDIATE CHOICE CURRENCY CONTROL POLICY (0.C.) WELLINGTON, Sunday The appointment of a governor of the Unserve Bank of New Zealand in succession to Air. Leslie Lofeaux, wlio retired at the end of December, is not expected to be announced for soma time yet. The Government's decision is being withheld, it is understood, until the term of the appointment of the deputy-governor, Mr. W. F. L. Ward, expires at the end of April. One explanation given in reliable quarters for the delay in making a permanent appointment is that the Government is awaiting an opportune time to recast the salary provisions attaching to the positions of governor and deputy-governor. Members of the Labour Party have made no secret that they evaluate the governorship at a sum a great deal less than the £SOOO per annum paid to Mr. Lefeaux, and it is considered likely that the salary to be fixed for the new appointee will, indeed, be closer to that now paid to the deputy-governor. It is pointed out that the invidious situation would have been created of the governor receiving no more than his deputy if an appointment had been made while Mr. Ward was still holding office. The unwillingness of the Government to take over the Bank of New Zealand continues to exercise the minority of the Labour Party, who contend that that act is necessary to carry out the party's policy of currency control. Reports are that at the caucus before I the session the subject was debated at great length, and that the Minister of Finance, the Hon. W. Nash, spoke strongly in opposition to the proposal. It is reported that he told the caucus that the Government had power to take over the bank without further legislative authority, but such action would be unwise, and his financial policy was endorsed by the caucus.