CENTRAL RESERVE BANK

Hokitika Guardian, 3 April 1930, Page 3

CENTRAL RESERVE BANK

FAR-REACHING PROPOSALS (Australian Press Association) ! CANBERRA, April 2. A Government Bill to establish a Central Reserve Bank was read the first time in the House of Representatives to-day. The Bill is likely to cause considerable controversy. The proposed Reserve Bank will have ah independent directorate, and jthey include one representative of Labour. It will have capital of two millions sterling. The Bank will have complete control of the note issue. It Will be empowered to issue notes, to buy and sell in the open market, cable transfers and buy, sell, discount or rediscount securities. It will act as the agent for the issue of loans on behalf of the Commonwealth and the States. It will make advances to other corporations, and buy, sell and deal in specie, but it is forbidden from making advances aginst land or from engaging, in trade or purchasing shares in trading eom- , pgpies or other banks. The- private' trading banks will be required to establish, and to maintain, in the Reserve ' Bank's reserves and balances of not less than five per cent, of their true liabilities. The Bill provides that Australian notes may be. printed and issued in denominations of five shillings, ten shillings, pound, five pounds, ten pounds or' firiy lhjuliipJe of £lO. The private bank.? will be required to keep a record and to furnish a return ’ O', the baiik notes they baye in circulation. , .... (