RESERVE BANK OPERATIONS

Taranaki Daily News, 16 August 1934, Page 5

RESERVE BANK OPERATIONS

MINISTER ASKED QUESTIONS.

STERLING ASSETS TRANSFERRED.

By Telegraph—Press Association. Wellington, Last Night.

Mr. H. M. Rushworth (Country, Bay of Islands) asked the Minister of Finance in the House to-day: (1) Whether he had seen a statement in the Press that the Government’s sterling assets in London were transferred by the agent of the Reserve Bank in London to that bank in Wellington; (2) whether such a statement was correct, and if so, how was the transfer effected; (3) whether the Government was in a position to inform the House who the agent for the Reserve Bank in London was and by whom and when such an agent was appointed. The Rt. Hon. J. G. Coates replied that he had not seen' the statement referred to, but the London funds in question had been transferred to Wellington by the Reserve Bank in exactly the same manner as private funds derived from proceeds of the sale of exports were transferred to New Zealand by the trading banks. The appointment of agents in London was entirely a matter for the Reserve Bank. The Government ( has no official knowledge who had been so appointed. Mr. W. Nash (Lab., Hutt) asked the Minister of Finance: (1) Whether he had seen the first report of the Reserve Bank of New Zealand; (2) whether he had noticed that the subscribed capital was £1,500,000; (3) whether he had noticed that the whole capital was absorbed by investments; (4) whether he would tell the House the source from which the trading capital was derived; (5) whether if it had been established that private capital in the bank was unnecessary he would make arrangements for its acquisition by the State. Mr. Coates replied: (1) He had seen the first weekly statement; (2) the statement showed that the paid-up capital was £500,000 and not £1,500,000 as quoted; (3) the statement showed investments to the extent of £1,500,000; (4) the capital was provided by public subscription. Other items in the statement reflected the sale of sterling assets by the Government to the Reserve Bank, the issue of bank notes and other transactions consequent thereon; (5) it had not been established that private capital was unnecessary.