THE RESERVE BANK
'WATCHING WITH INTEREST'
Legislation by which the Reserve Bank of New Zealand became the State Bank of the Dominion is reviewed by the Wellington correspondent of the "Times Trade Supplement," London. It is remarked that the Act was received by the Dominion without any evidence of alarm. In the House of Representatives the Opposition expressed its disapproval vigorously, but against the Government's overwhelming majority it could neither delay nor modify the measure. The trading banks informed the Minister of Finance of their objections to the general principle of the Bill, but they did not renew the public protest against State control of currency and credit which they had made when the issue was before the electors.
Except from the Press and the Opposition party in Parliament there was little criticism. It seemed to be accepted that the Government, however one might question what the votersintended, had by the rules of democracy a mandate to alter the monetary system. "A considerable body of public opinion is favourable, or at least not opposed, to State control, and possibly expects from it more than the Government may be able to give," observed the correspondent. But it is also remarked that "herein lies the danger. Pressure may be brought to bear upon the Government to go faster and further than the wiser members of the Cabinet approve. "The uneasiness of people who disapprove of State control is lessened by their fsith in Mr. Nash, whose capacity, integrity, and wisdom are highly respected. He is courageous and likely to resist strongly any attempt to use recklessly the powers with which the Government are now invested Moreover, he has declared plainly that he does not believe that monetary action is the whole solution of today's problems, only the first step towards solution."
The soundness of the banking posi--52 n .'of i New Zealand is emphasised This strength, and the hope that the Labour Government will continue to heed the cautious advice of Mr. Nash explain the calm with which New Zealanders have received "a radical alteration in financial and banking 08 the experg
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Bibliographic details
Evening Post, Volume CXXII, Issue 36, 11 August 1936, Page 12
Word Count
350THE RESERVE BANK Evening Post, Volume CXXII, Issue 36, 11 August 1936, Page 12
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