THE RESERVE BANK BILL

Otago Daily Times, Issue 22101, 3 November 1933, Page 6

THE RESERVE BANK BILL

TO THE EDITOR. Sir, —May I offer some comments on your leader of October 28 dealing with the Central Bank Bill? It is true, of course, that Mr Forbes did study central banking while attending the World Conference, or at any rate he undoubtedly received a lot of instruction from financial authorities who want central banks established. Before leaving for the conference, at which he was elected to the Monetary Commission, Mr Forbes told a deputation in Wellington (of which I was a member) _ that he did not profess to know t anything about money, so that his complete conversion to central banking was an easy matter. If you don’t know anything about the drink question and attend a conference of brewers, and are willing to acknowledge them as experts, you would soon learn. I can heartily agree with you when you say that a great deal of discussion on the Central Bank has been beside the question of principle, and would also point out that the criticism levelled against our banks is not nullified by the fact of a world depression when the “ principle ” under which our banks operate is a world principle. Rather the opposite. I confess that I am unable to understand your statement that what is required is a return of confidence, and not an increase in purchasing power—i.e., money. Personally, what I require is definitely money, and no amount of “ ballyhoo ” will convince me otherwise. Observation also leads me to the belief that shopkeepers and traders also want money, and that this condition of affairs is not unknown among the unemployed. I am not aware that I want confidence, and, if I was, I would not have the faintest idea of how to get it, but unless you can assure me that confidence will secure me meat and drink I am not greatly interested. What I am interested in is the relationship of this elusive confidence with centra] banks, as I have drawn from your article the conclusion that a Central Bank will bring confidence, and, even if confidence will not feed my dog, it may be useful in other ways. But, alas, English and American periodicals are also calling for confidence, and I understand that repeated requests for it to come to heel have been broadcast from all quarters, and, as the whole world knows, these countries are the homes of central banking. J I can assure you that I do not shout for an* increased claim on goods from a political motive. My motive is primitive, and, strange as it seems, there are thousands even outside the Socialists’ ranks who are also primitive; they want goods, not politics, and not confidence. No doubt you will regard this as selfishness, and, as far as I am concerned, you would be quite correct, but it is also natural and sensible, whereas to shout for confidence when I want goods would be idiotic. I —l am, etc., _ D. C. Davie. Gloucester street, Christchurch. November 1.