RESERVE BANK

Hauraki Plains Gazette, Volume 52, Issue 32307, 1 September 1943, Page 5

RESERVE BANK

USE OF PUBLIC CREDIT MR THORN AT WAITAWHETA In reference to the guaranteed price policy of the Labour Government, Mr Thorn, in his speech at Waitawheta last Monday said that the nationalisation of the Reserve Bank had been carried through to make it possible. The bank performed a great financial service for the people of New Zealand, and this without cost, and through its means the Government was able to control currency and credit operations in the Dominion. There was no doubt whatever of the effectiveness of this control and of the great advantages that accrued to the people. In the bank’s last annual report to Parliament some indication of the public credit made available for the purpose of the Government was given. As at March 31 last advances to the Marketing Department stood at over £4,200,000 while foi’ other purposes a sum of over £31,000,000' had been made available. Of this latter sum roughly £23,000,000 had been used to finance the Government’s house-construction policy, and in addition to the land purchased for housing over 15, D00' houses had been erected. The remainder of this credit had been spent upon roads, bridges and public buildings.

The rates of interest charged by the bank were low, and little -more than met the cost of the bank’s operations. In fact, the bank’s operations were done for the community at cost because whatever profits it makes have to be paid i'ito the Consolidated Fund. The profit ’ast year was £317,118, and in terms of the Reserve Bank Act the whole of this had been paid into the Consolidated Fund from which it could be utilised for other public purposes.