NEW ZEALAND'S CURRENCY.

Manawatu Herald, Volume XLVII, Issue 2981, 31 December 1925, Page 2

NEW ZEALAND'S CURRENCY.

“New Zealand is in a class apart as regards the currency position," says the Statist, in its annual international review of banking. “There is no central bank - in New Zealand in the technical sense, and tho currency requirements of the Dominion are supplied by all the banks operating therein. There is no limit to the amount of notes that may he issued by the banks, provided a minimum cover of 33 1-3 per cent, is held in the form of gold coin and bullion, the remaining twothirds to he covered by Government securities held in New Zealand, or, under certain conditions, Government securities held in London. The relation between the figures for note circulation and coin and bullion indicates a wide margin for further expansion in the note circulation if such should lie required for trade. In fact, tin* note circulation in New Zealand has been consistently far below tlml allowed liv law, wita the result lim! the Dominion has been entirely free from tlm currency stringency experienced by .Australia, the banks being in a position to meet readily any increased demand for notes. It is remarkable, indeed, that New Zealand, which has had no centralised control of currency or credit, and no central bank, has had to e( ntend with less formidable currency and exchange troubles than Australia, with li.-r unified control of the note issue.”