A WHIRLWIND TOUR

Otago Daily Times, Issue 22716, 31 October 1935, Page 10

A WHIRLWIND TOUR

THE MINISTER OF FINANCE RESERVE BANK DEFENDED (Special to Daily Times) KUMEU, October 30. On what is practically a whirlwind tour of his own electorate, Kaipara, the Minister of Finance, Mr J. G. Coates, addressed meetings to-day at Woodhill, Albany and Kumeu. In each district he was enthusiastically received by settler audiences and gave a comprehensive review of the steps taken by the Government for the rehabilitation of the country during the years of depression, together with an outline of the future policy as disclosed this week in the National Government's manifesto. Mr Coates, who is accompanied by Mrs Coates, is driving his own car round the electorate. One of the main points dealt with by Mr Coates at to-day's meetings was the ill-informed criticism of the Reserve Bank. Most of the critics, he said, seemed to be drawn from the ranks of those who held that worldly affaire were controlled by a group of rapacious international financiers. They made the ridiculous assertion that the establishment of the Reserve Bank was a device which enabled this mysterious group to control the finances of New Zealand. It was a hopeless, jaundiced outlook. For the first time New Zealand had complete control over its own credits and currency. The Reserve Bank was established, not for the purpose of making profit, but to direct, financial affairs in the general interests of the Dominion. The majority of the directors were appointed by the Government, and the basis of the election of the directorate as a whole was well devised to enable every economic interest to be expressed. The relationship between the Reserve Bank of New Zealand and similar institutions in other Empire countries was purely one of co-operation. The Reserve Bank was still a young institution, and when the financial machinery was more fully developed it would be a potent influence in stabilising the economic conditions. Mr Coates also dealt with the raising of the exchange rate and the criticism levelled against the Prime Minister, Mr G. W. Forbes, for saying that it would not be raised. If the Prime Minister had given an indication in advance of the action proposed, there would have been a glorious rush of speculation. As it was, the banks did not take advantage of their advance knowledge, but carried their grave obligations with a full sense of their responsibility.