RESERVE BANK

Hokitika Guardian, 16 September 1933, Page 5

RESERVE BANK

N.'Z. PROPOSALS APPROXIMATE ENGLISH LABOUR. (Special to X.Z. Press Association.) (Received this day at 10.30. a.m.) LONDON, September 15. Interesting comment of tlie London “Daily Herald* 5 (Labour) paper, m regard to tile reserve bank .proposals, is contained in these words: “It is interesting to note how close the central bank proposals of the New Zealand Government are to those of the Labour party’s proposals in this country, for the reorganisation of the Bank of England. SUPPORT IN BRITISH PRESS. LONDON, September 14. Referring to New Zealand’s reserve bank proposals, the London “Daily Telegraph” says: Mr Coates has clone well to publish explanatory articles in Now' Zealand iu view of the vast opposition especially from banking interests. It adds: In Britain there will be general agreement with Mr Coates’ assertion that such vital matters, as control of currency and credit should not be left in the hands of commercial bank's. The scheme is framed on conventional lines, With proper safeguards .to ensure immunity from political - influence it should also ensure sound direction of money and credit and exchange policy, and do much to facilitate co-operation with Britain and others members of. the Imperial family. The “Yorkshire Post” devotes a long leading article to the subject, stating, inter-alia, that the New Zeaancl proposal is to be welcomed. The social* usefulness of commercial banking institutions will he increased, not diminished, by the existence of. a coordinating body. The real objective of the reserve bank is to give the banking system an efficient rudder while leaving the engines of private enterprise to work unimpeded. The existence of a bankers’ bank is required by a fully developed economic system. Only by this means can a nation’s hanking resources be fully utilised. From the aspect of the economic development to the Dominions themselves the movement to establish central banks is welcome.