PUBLIC DEBT

Evening Star, Issue 22453, 25 September 1936, Page 1

PUBLIC DEBT

RESERVE BAHK ASSUMES HAHAGEMEHT OCTOBER 1 [Bek United Press Association.] WELLINGTON, September 24. Mr Nash, Minister of Finance, announced that the Reserve Bank of New Zealand would assume the management of the. Public Debt on October 1, and that notice of the requirement made upon the bank in this regard was contained in the Gazette. . . The Minister stated that provision was made in the original legislation establishing tho institution, whereby the bank, on the request of the Minister, should keep a New Zealand register of inscribed stock and act as agent for the Treasury in payment of interest and principal, and generally in respect of tho management of the Public Debt. This arrangement was in conformity with the recognised principles of central banking, it being one of the usual functions of an institution of this nature to undertake on behalf of the Government services which are incidental to or reasonably associated with tho raising of Government loans, the issue of securities iu connection therewith, the discharge of obligations to the holders of such securities, the keeping of records of all loan transactions, and accounting for all the proceeds of such loans.

The Treasury officers at present employed on the special work involved would be transferring to the staff of the Reserve Bank, and as far as the usual service to the public was concerned no material change would bo evident, other than that the bank would, from October 1. be responsible for carrying on tbs work connected with New Zealand Government loans, and would assume the position of Registrar of New Zealand Government Stock.