STATE NOTES PROPOSAL.

Otago Daily Times, Issue 15273, 13 October 1911, Page 3

STATE NOTES PROPOSAL.

SOME CRITICISM. (FnoM Oi'B Own ConitEsi'os-nEN'i.) AUCKLAND, October 12. Authorities on tanking matters in Auckland regard the Government's proposal to | issue bank imtea with little favour. It will be a dillicult scheme in many ways, they say. One authority, interviewed, .said that if such notes were to ho issued provi/iion should be made to change them, not, in Wellington* alone, but in ail the centres, especially in Auckland, where by far the largest Volume of business was done in New Zealand. To have the single establishment in Wellington would prove very inconvenient, as the banks, according to details now published, arc to be given no inducement to change the notes. The scheme, ho was certain, would have no effect on the banks. An ex-bank manager said be wondered hoiv the Government wore to get the noj.es issued. The banks were to get nothing for issuing them, and if thev wanted t-hein they would have to give sovereigns to the Govornmeut for tliein. They were to get no premium—nothing. It Was absurd. The State notes were not to he legal tender to the Government for debts, though they could tie given as such to atiw common person. What would people run after State notes for under such conditions. .Many people objected to note of any kind. As tiling? were, perhaps it would be better for the Government, to issue gold.