The Feilding Star. THURSDAY, JUNE 3, 1886. New Zealand Note Currency

Feilding Star, Volume VII, Issue 152, 3 June 1886, Page 2

The Feilding Star. THURSDAY, JUNE 3, 1886. New Zealand Note Currency

Such is the title of a Bill introduced to Parliament by Mr J. 0. Brown, the member for Tuapeka. It proposes to issue notes of various denominations, but of not less value than ono pound sterling, in payment of salaries, wages, and other debts due and payable by the Government, or in exchange for uncoined gold whether assayed or not. All notes issued under this Act are to be deemed Bank notes, and are to bear interest, after a currency of three months, at the rate of five per cent, per annum. The total value of notes in circulation at any one time is not to exceed four millions sterling. They are to be a legal tender, for the amount expressed on the note, and shall be valid as a tender for all sums above two pounds on all occasions on which any tender of meney may be legally made. Cash for these notes shall be payable en demand. The Governor may appoint agents in various parts of the colony for the purchase of uncoined gold in exchange for notes, and may also appoint places at which notes shall be issued in exchange for gold. Provision is made for having gold assayed by proper persons, and by proclamation fix the price which shall be given for the various qualities of gold offered for sale. Subject however, that the maximum price to be given shall not exceed the price paid for standard gold by the Bank of England, less the cost of assay. We do not intend to traverse the whole of this Bill, but will seleot its most salient points for our criticism. The jelause which provides that all wages, &c, payable by the Government shall be paid by these notes, forms a neccessary part , of the measure, but may be condemned in a few words. They would be considerably below par in their purchasing capacity, and a direct robbery would be thus inflicted on Government servants. The total value of notes issued not to exceed four millions. As the united banks have neve* been able to touch one million in their note circulation, this is absurd. Making them a legal tender for all sums over two pounds. This is also absurd, because where large sums were concerned special provision would be made that the money tendered in re-payment should be of equal value to the original sum. Notes to be payable in cash on demand. We believe this clause would be ef easy fulfilment, as the circulation would be only equal at any time to the sum paid in wages to civil servants. The fact that Mr Brown is a Representative of a gold fields constituency is made patent by that clause which provides the Governor may fix the price of gold by proclamation. This idea of "fixing the value" of gold — or the sum to be paid for it by the banks — which is not always the same thiug — is good. It means that tho Governor may declare gold which is worth only £3 per ounce, is to be bought at a valuo of £3 2b 6d or any other sum t'j suit the circumstances of the miners. As " the Governor" means the Ministry of the day, should this Bill become law, any combination of goldfields representatives at a Ministerial crisis could compel "the Governor" te " raise the price of gold" for the benefit of their constituents at the cost ef the colonists at large. The whole Bill is neither more nor less than another attempt to introduce a Colonial Bank of Issue, and we have little fear but that it will share the fate of its predeoessor.