CENTRAL RESERVE BANK

Hokitika Guardian, 7 August 1930, Page 3

CENTRAL RESERVE BANK

AUSTRALIAN FINA NOE.

Press Association) CANBERRA, Aug. 6. The Federal Loan Council has held L :. !a.. ,xital meeting, and has adopted a i* 'plan for the mobilisation of' Austral- [ ian'..credit in London, so as to assist v the Comtaomvealth to meet its :oblil .':gati6ris /piomptly. ’: • •". The Prihie Minister, 'Mr J. H. Sculliii,' stated .that there would be a spCcijaU; coiifere.hee; bet'veen the Prem'^riblLoiirite 1 Yur-''August 18th to * I gQ_ into the question of the balancing pf J the'State’s budgets. Niemeyer (Bank of EnglahS|expert) took part in the Loan Councils deliberations, and it is - that he advised that ; .thdfe. «>> on ld be the strictest supervise 5 ripny,pyer expenditure. ".■ Y t>PPOSiniON EXPRESSED. ife -f e. Select iCdipmiff'ee, that! i was apto investigate the Central ; Ba : jik;‘Bill),!.recommends that £ rf: cto- ; ihe !, ®ill should -be '.®aH&i.t |rp.lß Niemeyer (Bank of England expert) and that the Bill should till. n«ct year. -\?}The rhpdrt'fsetk Out (that; there is aiT"ovenvherming 1 " volume "of evidence that iS oppqsedtitoyart.v gjrastic change being made during the present - critical period, stating strong • excepti’dn' by witnesses to the proposed method of appointing tlie Board ■bf' Management, owing to the danger exercise of undue political ig*fltKhice "and a fear was expressed that the powers to !>•> given to the Reserve Bank to make advances would lead to unsound practices. <f rhe Committee stated it was convinced that no gpod purpose could be ..^ejfcyed,l>vV such' a bank, while c-onsid-’ harm /|oßld i-esujt from its establishment.lj I ■ 'sj-rtUyTIC". ’‘f ll l ■■, jr| ; A EfTffjCPR, Report; • ;■(, l 1 'V - ! ol Ik. S I U PA'NBtRRA, •, Aug:: ;6. i.': it.eseiwe; IBaiiW : coiiimitleeP%^;i; u^h.gt , that thebe y ai‘hipanimity ;• bf ! opinion -. among' the that,'a Central- Reserve Bank was a. adjiinct to . the financial system of’the 'RSmni.onU'eallth provided that it "performed ’.the true functions of central reserve hanking, was - assured -of-, immunity from jfoliftfcaf; control. -''•At; the same time there was nothing that a Central Reserve Bank could do at the present tune ’-which- the* Commonwealth Bank 'tS ‘'hot*' I ' already in co-operation with the private banking institutions.