RESERVE BANK

Wanganui Chronicle, Volume 79, Issue 281, 30 November 1935, Page 9

RESERVE BANK

NOT TO BE DESTROYED MR. SAVAGE’S ASSURANCE [ Per Press Association. ] AUCKLAND, Nov. 29. An assurance that the Labour Government did not intend to destroy the Reserve Bank of New Zealand or involve its private shareholders iu Josses, was giveu by the future Prime Minister, Mr. M. J. Savage. If the Reserve Bank was to be taken over by tho Government and made entirely a State institution, Mr. Savage said, the 500,000 shares at present held by private shareholders would be taken over at current market rates. There would be no question of forcing sales at par and involving the shareholders whe had purchased shares at a premium in loss. “It is uot ye.t 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 the trouble half way 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 is not to do un inquiry 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 defeat of the last Government,”