THE RESERVE BANK

Otago Daily Times, Issue 22742, 30 November 1935, Page 14

THE RESERVE BANK

QUESTION OF GOVERNMENT PURCHASE RULING PRICE FOR SHARES ASSURANCE BY MR SAVAGE (Special to Daily Times) AUCKLAND, November 29. An assurance that the Labour Government did not intend to destroy the Reserve Bank of New Zealand or involve private shareholders in losses waa given to-day by the future Prime Minister, Mr M. J. Savage. •'* If the Reserve Bank waa to be taken over by the Government and made an entirely State institution, Mr Savage said, the 500,000 shares at present held by private shareholders would be taken over at the current market rates. There would be no question of forcing sales at par and involving shareholders who had purchased-the shares at a premium in a loss.

“ It is not yet definite that we shall have to interfere with' the present constitution of the bank,” Mr Savage continued. “We were opposed to it in its present form as we wanted a State bank pure and simple. However, we are not going to attempt to meet trouble halfway and I see no reason why the present Reserve Bank board should refuse to work with us. Personally, I would welcome their co-operation.

“Our job” Mr Savage said, “is not to do an injury to anyone who has bought Reserve Bank shares, but to see that they are not losers by it. In consequence, if it becomes necessary for us to take over the private share capital we shall pay for the shares at the current market rate. It is merely a question of deciding what that rate will be, and in my opinion it will possibly be the rate ruling at the date of the defeat of the last Government.”