CENTRAL BANKS

Otago Daily Times, Issue 22256, 8 May 1934, Page 7

CENTRAL BANKS

NEW ZEALAND’S PLANS MOST INTERESTING GESTURE (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, May 6. The Midland Bank Review, discussing the pending establishment of central banks in New Zealand, Canada, an! India, says: “ Time alone will show whether they will contribute to a more intimate association in framing anl executing a broadly-conceived Imperial monetary and financial policy. Experience alone also will show whether the new banks will do within their own countries something worth doing, but not previously done, or do better something already indifferently attempted. The chief virtue of the, new banks will be the removal of the doubt as to where the responsibility of monetary conditions rests. The most interesting gesture in New Zealand’s plans is as to the rate of the redeemability of notes, which is within the discretion of the Reserve Bank. It would be untrue to say that New Zealand currency is on the sterling standard.” ;