The Feilding Star. THURSDAY, MARCH 25, 1886. A Bank of Issue

Feilding Star, Volume VII, Issue 122, 25 March 1886, Page 2

The Feilding Star. THURSDAY, MARCH 25, 1886. A Bank of Issue

We have carefully noted the opinions of the newspaper press of the colonj on the subject of a Colonial Bank of Issuer and have not discovered a single line written in its favor, while its condemnation appears universal. Although the advocates of the measure may not think this fact proves them to be in error, yet it is conclusive evidence to our mind that the Press does not intend to commence for some years to come, to " educate the minds of the masses" to support it. In a previous article we explained that before State notes could be made profitable, the present circulation of bank notes — which is under one million pounds — would have to be forced back into the coffers of the banks, thereby realeasing a similar sum in gold which would in the course of business find its way back into their coffers in part payment of current advances, the balance of which would have to be re-paid at the money value obtaining when they were granted. This would be a ruinous loss to business men and farmers. The Christchurch Press in concluding an article on this subject says:— The idea of the advocates of such a change is that by such an issue the money which would be issued would go much more largely into circulation than is the case atpresent. The Governmentnotes would not only take the place of those already in circulation, but would be issued on every occasion when the Treasury stood in need of money. All Government contracts would be paid in those notes, ending, naturally, in the country being flooded with inconvertible paper. It needs very little knowledgs of financial matters to see that the end would be a huge disaster.