Untitled

Hokitika Guardian, 20 December 1932, Page 4

London journals gave• prominence to the prop(>< " 1 of 'he New Zealand Government to establish, a reserve

bank. In the course of a leading article, the .Financial Timtvs said:

“'rhe proposals are in no sense to lie regarded as roikcling upon the valuable services which the existing banking system inis rendered to the country, not least during the current depression. 'Critics may argue that the internal difficulties attendant upon a .transition have been magnified by existing international conditions. On the other hand, it seems clear that the sponsors of the project find in the same world turmoil a powerful and over-riding reason for putting New Zealand into a better position to participate ill ally wide co-operative effort, iso far as lues within the power of banking to stimulate recovery. . . Sir Otto Niemeyer, who has been preeminent in the extension df central banking in its present form, draws the vital distinction which is necessary in practice between the functions of the reserve hank and the trading banks that they must not ha competitive. No such basic recommendation can be ignored by a plan which it is known is to follow his outline closely. Its early enactment, which seems certain, should, therefore, bring New Zealand’s monetary practice more into conformity and help to create that machinery whose absence is sometimes urood as rendering, the change impracticable, while reducing to a minimum the inevitable reactions upon th e existing banks.”