STATE NOTES

Dominion, Volume 5, Issue 1258, 13 October 1911, Page 4

STATE NOTES

SOME AUCKLAND OPINIONS. (By TcleEraph.-Spccial Correspondent.) Auckland, October 12. Authorities on banking matters in Auckland regard the Government's proposal to issue bank notes with little favour. It will bo a difficult schemo in many ways, they say. One authority interviewed said that if such notes were to bo issued provision should ho made to change them, not in Wellington alone, but in all the centres, and especially in Auckland, whore by far the largest volume of business was done in New Zealand. To have the single establishment in Wellington would prove very inconvenient as the banks, according to details now published, arc to bo given no inducement to change the notes. The scheme, he was certain, would have no effect on the banks. An ex-bank manager said he wondered how the Government were to get the notes issued. Tho banks were to get nothing for issuing them, and if thev wanted them they would have to give sovereigns to the Government for them. They wero to get no premium—nothing. It was absurd. The Stato notes wero not to bo legal tender to tho Government for debts, though they could bo given as such to any common person. What would people run after Stato notes for under such conditions? Many people objected to notes of any bind as things were. Perhaps it would bs better for the Government to issuo gold.