AUSTRALAN FINANCE

Stratford Evening Post, Issue 14, 8 August 1930, Page 3

AUSTRALAN FINANCE

CENTRAL reserve bank. SELECT COMMITTEE r. ETORTS (•AXBKB KA, August fi. The Sihect Comm?Ltoo appointed to investigate the Central Bank Bill recommends that an opm. i ion on the Bill should ho .sought from Sir Otto Xiemeyei, and that the Bill should he deferred till next year. The report set- out that there is an overwhelming volume of evidence opposed to any drastic change o' the pie sent entienl pc noil. Stionsi 1 ception was taken ky witnesses to the method of appointing the Board of .Management, owing to the danger of the exercise of tind.ne political influence, and the I ear was cxpi Cssod tli at tiie powers given to the hank to make advanees would lead to unsound practices. Tlie committee was convinced that no' good jpurpose canl-d served by such a hank, while considerable harm could result front its costa hlishment. The committee further reported that there was unanimity of opinion among witnesses that a Central Reserve Bank was a desirable adjunct to the financial system of the Commonwealth, providing it performed its into 'functions of Central Reserve banking, and was assured of immunity front political control. At (he same time, there was nothing that a central reserve bank could do ;it the present time which the Commonweal ill Bank was not already doing in co-operation with hanking institutions.