BANKING AND CURRENCY

Nelson Evening Mail, Volume LXIII, 3 August 1929, Page 5

BANKING AND CURRENCY

To meet possible war emergencies some of the most important provisions of our permanent banking legislation were suspended by regulations made under section 44 of the Finance Act, 1916, and the banks were given greater scope in the matter of note-issue, limit of debts, engagements and liabilities, etc. It was,originally intended that these regulations should operate only for the war period, hut in terms of section 66 of the Finance Act, 1917, (hey remain in force until a day to be fixed by the Governor-General in Council. No date lias yet been fixed for the termination of the regulations. Following the economic upheaval of the war, nearly every country in the world lias found it necessary or desirable to amend their currency laws to meet the altered conditions. It is certain that some amendments to Hie permanent banking legislation will be necessary in New Zealand, as a complete return to pre-war .practice is inadvisable, if not impossible. For instance, a return to an internal gold ure'd.ii-ron would be a luxury for which there is no need arid no demand. Great. Briy.rm found she could dispense with it. r i be culy authority for the ten-shilling note is the War Regulations. Since the outbreak of the war successive. Proclamations have maintained bank-notes as legal tender in New Zealand. The pbrod fixed by the last Proclamation expired on 10th January last, and though I am desirous of repealing all war regulations as soon as possible 1 j considered it- advisable in this case to maintain the existing position until such time as the permanent legislation governing banking can be overhauled. conlingly a further Proclamation was sued making bank-notes legal tender until 10th /January, 1932