The Guardian And Evening Star, wild which is incorporated the West Coast Times SATURDAY, NOVEMBER 26, 1932. A CENTRAL BANK

Hokitika Guardian, 26 November 1932, Page 4

The Guardian And Evening Star, wild which is incorporated the West Coast Times SATURDAY, NOVEMBER 26, 1932. A CENTRAL BANK

In the House on Wednesday the Prime Minister stated that the Government : had definitely decided to .pass the legislation establishing a eerural bank. He said the institution was considered to lie an essential part of the, country’s banking machinery. On this point there are two questions to wnicli answers would ue welcome-—why a central bank is considered essential, and why it is necessary to push on with the scheme at once, states the Dominion. Unless most convincing and urgent reasons .can be given, the public will wonder why a system than works should be superseded. The present is no time to Le experimenting with new organisations when existing ones are serving quite well. If everything were on a stable basis and the outlook unclouded, certain anomalies in . our banking and currency system might be corrected and perhaps its reorganisation attempted. To launch a new and untried craft in present heavyseas, however, would! seem both toolbar dl.y and unnecessary. There are doubts whether there are any fwng-> tions « central bank can perform that are not already being satisfactorily discharged. Also, how is its institution to he financed and where is the Government to, find a governor and staff with the requisite, training, knowledge, and; judgment to guide and control the bank’s policy? These and other questions must be troubling the Government just as much as other people, if it has given the project the serious and detailed consideration its .importance warrants. Yet the Prim© Minister proposes to push on with the legislation at* the tail-end and in the heedless hurry of the end of the session. Common,sense and ordinary caution would normally veto such precipitance. A few days ago it was doubtful whether the Bill would come down this session. Now it is definite. Why this sudden decision? Is there a political motive 1 Time and again it has been -emphasised that if New Zealand sets up a central bank, it should he completely divorced from politics. It would be- a, queer twist if its genesis were due to a, political motive. Of course there may be good and sufficient reasons why it is essential to hasten its birth but the public will need to be satisfied they exist. It may be hoped the Government does not propose to place an Act on the statute book and' leave it inoperative. There would be obvious, objections, to a course which would place latent power in the hands of any Administration in its dealings with the existing banks.