Correspondence.

Feilding Star, Volume XV, Issue 345, 21 June 1894, Page 2

Correspondence.

A STATE BANK. TO THE EDITOR OF THfi STAR. Sir, — One of the principal questions before the House this session will be that of the State Bank. It is one which ought to be carefully considered before finally settled. I believo it is proposed to start the Bank simply on a paper currencj T , without a gold basis. Surely this would be a disastrous mistake, and one which would soon plunge the colonj 7 into the monetary chaos in which the ! States of America now stand, and which at the present moment is engaging the attention of half the civilised world. Supposing that this paper curreucy is instituted and these iuconvertable notes issued, thero will be practical!} 7 two currencies' — a gold and a paper currency, the value of the latter fluctuating with the ability of the Government to redeem it. Although the notes will be legal tender, yet in a short time they will bo worth practically tho paper they aro printed on, and will only bear their nominal value when paying rates, taxes, and other liabilities to the Government. The Banks will not likely givo a man full credit for notes for which they cannot obtain the equivalent iv s jvereigns, and that alone will of courso pull their value down. On the other hand a State Bank for New Zealand, started on a gold basis, is one which would bo a good thing for this colony and one which could enable Mr Seddou to invest tho thousands at present in the Banks of New Zealand for the good of the public. I am, etc., Wk.ll Wisher.