CENTRAL BANK PLAN

Poverty Bay Herald, Volume LXI, Issue 18287, 4 January 1934, Page 6

CENTRAL BANK PLAN

AMERICAN PROPOSAL SUPPORT PROMISED ENGLAND AS A MODEL

(Elec. Tel. Copyright—United Press Assn.) (Received Jan. 14, 2 p.m.)

NEW YORK, Jan. 3

Mr A. P. Giannini, the “father of chain banking” and a director of the National City Bank of New York, in an interview in the Evening Post, today endorsed the proposals to I ransform the Federal Reserve into a central bank of issue, patterned after the Bank of England.

A dispatch to the newspaper from Washington declares that Senators Borah and Cannuys are prepared to introduce legislation to create such a bank. They desire Mr Roosevelt’s hacking, but if it is not forthcoming, they will act independently.

Senator Borah declared that he favored a central bank at the time the Federal Reserve was established in 1913. The subsequent failure of some .10,000 banks, of which <IOOO had collapsed in the last, few years, had convinced him that radical hank reform was necessary. He said he had been making a careful study of central banks and had obtained a book from Australia dealing with the central banking system in that progressive country.