RESERVE BANK

Hokitika Guardian, 10 December 1932, Page 5

RESERVE BANK

ITS PROVISIONS EXCLUSIVE RIGHT OF ISSUE. (Pt Press Association— Copyright.) .WELLINGTON December 10. Under the Reserve Rank of New Zealand Rill it is provided that the general conduct of the Bank’s business shall be entrusted) to a board of directors consisting of the Governor, deputy-Governor, and five other members.

The Reserve Bank is to have the exclusive right, for at least twentyfive years, ito issue bank notes in New Zealand. On the dat© proclaimed for the Reserve Bank to luave this right, every other bank shall transfer to the Reserve Bank, in exchange for the equivalent value of Reserve Bank notes, all gold coin, or bullion then owned by it. .The equivalent value of gold coin in bank notes shall be the nominal value of such coin, and the equivalent value of gold bullion in bank notes shall b© the amount computed at the price of £3 17s 10$d an ounce. Any profits derived by the Reserve Bank from, the sal® of gold and bullion,, transferred to it by any bank, shall either be, credited to that bank, or be apportioned between that bank and the reserve fund of the bank, in a manner to be agreed upon, or to be fixed by arbitration. Two years after the date when the sole right of kisuing notes became vested in the Reserve Bank, other banks shall pay. over to’ the Reserve Bank an amount equal to . the value of its then outstanding notes, issued! or payable in New Zealand, and its liability in respect of such notes to the holders shall be deemed to have been assumed by the. Reserve Bank.

New Zealand Government accounts are to be kept •with the Reserve Bank, and no charge shall be made by that bank for services in that connection. Provision is made for the payment to shareholders of a cumulative dividend of 5$ per cent. The Bank shall not be dissolved except by act of Parliament.