AGAINST RESERVE BANK

Taranaki Daily News, 7 August 1930, Page 11

AGAINST RESERVE BANK

FINDINGS OF COMMITTEE ITS POSTPONEMENT ADVISED POLITICAL CONTROL FEARED By Telegraph—Press Assn.—Copyright. , Rec. 8.39 p.m. Canberra, Aug. 6. The select committee appointed to investigate the Central Reserve Bank Bill recommends that opinion on the Bill should be sought from Sir Otto Niemeyer and that the Bill should be deferred till next year. The report sets out that there is an overwhelming volume of evidence opposed to any drastic change in the present critical period. Strong exception was taken by witnesses to the method of appointing the board of management owing to the danger of the exercise of undue political influence, and the fear was expressed that the powers given the bank to make advances would lead to unsound piactices. The committee was convinced that no good purpose could be served by such a bank, but considerable harm could result from its establishment. The committee further reported that there was a unanimity of opinion among the witnesses that a central reserve bank was a desirable adjunct to the financial system of the Commonwealth, providing it performed the true functions of the central reserve banking and was assured of immunity from political control. At the same time there was nothing a central reserve bank could do at present which the Commonwealth Bank was not already doing in co-operation with private banking institutions. MOBILISATION OF CREDIT. VITAL MEETING OF LOAN COUNCIL. Rcc. 8.49 p.m. Canberra, Aug.. 5. The Loan Council held a vital meeting to-day and adopted a plan for the mobilisation of Australian credit in London to assist the Commonwealth to meet its obligations promptly. The Prime Minister stated, there would be a special conference between the Premiers at Melbourne on August 18 to go into the question of balancing the State’s Budgets. Sir Otto Niemeyer took part in the Loan Council’s deliberations and it is understood he advised that there should be the strictest supervision over expenditure.