THE OTAGO DAILY TIMES TUESDAY, MAY 23, 1934. THE RESERVE BANK

Otago Daily Times, Issue 22268, 22 May 1934, Page 8

THE OTAGO DAILY TIMES TUESDAY, MAY 23, 1934. THE RESERVE BANK

The shareholders in the Reserve Bank of New Zealand have now the satisfaction of knowing that the institution will commence operations under the control not only of a Governor who was highly recommended for his office by authorities of the highest standing but also of a board of directors composed of men of proved and sound business capacity. The personnel of the board, as now announced, is such as certainly inspires confidence. A great many people have been in doubt concerning the actual need for the establishment of a Reserve Bank in New Zealand but, the establishment' of one having been decided upon, the desire must be generally entertained that the institution will have a successful career. The essential to the achievement of this end that is represented by the provision of efficient management has been carefully provided for in the choice which the Government has made of executive officers and directors.. It will not be until about two years after the bank begins operations that, accidents excepted, any change in the directorship will be made. It will be on June 30, 1936, that the first,of the four directors who represent the shareholders' interests will retire, and one will retire in each ■of-the three, succeeding years, The term of office of one of. the State directors will expire on July 31, 1936. In the case of another it will expire in 1938 and in the case of the third in 1940. This arrangement ensures that the general lines of the policy of the bank will be laid down before the personnel of the board of directors undergoes any change, and this may be regarded as in itself advantageous and desirable. The people of New Zealand who have had no previous experience of the operation of a Reserve Bank will watch with interest and curiosity the beginnings and the development of this institution. And, if the primary duty of the bank—namely, the exercise of such control over monetary circulation and credit in New Zealand as will secure that "the economic welfare of the Dominion may be promoted and maintained"—is satisfactorily discharged its operation will be a source'of distinct gratification to them.