N.Z. PARLIAMENT

Hokitika Guardian, 20 October 1933, Page 5

N.Z. PARLIAMENT

THE RESERVE BANK ALTERATION IN ITS POWERS (Per Pregg Association, Copyright). WELLINGTON, October 20. The Reserve Bank of New -Zealand Bill was introduced in the House of Representatives last might. The Hon. J. G. Coat-e s said there

had been no major changes in ihe working of the proposed reserve bank, but there ,had been some alterations in its powers and in the constitution of its board of directors.

The Bill proposed to make it lawful, with the consent of the Governor-Gen-eral-in-Council, to issue bank notes of a denomination less than ten shilling?. It was proposed that the profits derived by the reserve bank from • the sale of gold transferred to it by any, trading bank, should be credited to the public account. Dealing with the constitution of the board of. directors, Mr Coates gaid 'that, in the first bill, it' was proposed that the shareholders should elect five directors, a governor, and a deputy-gov-ernor, the state having no. pww o* nomination whatsoever,

•In the present bill the Secretary to the Treasury, was given.. ,a place pn the 'board of' directors hut had no voting power. In addition the state was to appoint three' directors, : while the shareholders appointed four, • two of-w-hcm were to represent .ifarming interests, and two to represent ! industrial or commercial interests. The- governor and deputy-governor were to be elected by the shareholders, iwith the .approval of the Governor-Gener,al-ih-Councir.

Replying to interjections, Mr -Coates said that the gold from other banks taken over by the reserve bank:,would •be taken over at the book value. , "■ ’

'Mr R. A, Wright (Govt., Wellington 'Suburbs) : “What does book value mean ?” . •• ■ V •-

Mr Coates said there was a difference between book -value an-d market value. The market value-would be £3 17s lOd per ounce. - • -

The House rose at 10.5 p.m

CONSTITUTION OF DIRECTORATE

BIGGER CONTROL BY STATE.

WELLINGTON, October 19

Changes of vital,, importance are disclosed' in the revised Reserve'Bank of New Zealand Bill, ? which t was introduced in the House ■ to-night. • > The element of State control has been greatly strengthened, and drastic alterations have been effected in the constitution of the directorate, which will be. wholly subject to Governmental appointment until the shareholder!-! .exorcise their .first right of election in 1900.

On the much debated question of the terms on which the gold coin and bullion held by trading banks will be taken over, the Bill takes the “short cut,” 'and' assesses it on the book value of £3 17s 10-1 d per ounce. The original provision for a monopoly of the issue of notes, however, has been modified by elimination of the important'word “sole” from the governing clause. The measure also makes it clear that the bank will not be required at any specific date to bring the rate of exchange on London closer to parity. PROMINENCE IN ENGLAND. v LONDON, October 19. Financial papers, without any comment, give prominence to a. cable sent by Mr Forbes, New Zealand Premier to Sir T. Wilfqrd (High Commissioner), detailing the Constitution., and directorate of. the New Zealand Central Bank in reply to criticism published here.