A CENTRAL BANK

Rotorua Morning Post, Volume 2, Issue 335, 23 September 1932, Page 5

A CENTRAL BANK

Wellington, Thursday. The reference in the Speech from he Throne to banking has given rise to much speculation as to what form the proposed legislation will take, During the past few rnonths, one oi two Ministers of the Crown have publicly stated that they are in favour of the creation of a central bank on the lines indicated in the Niemeyer report, and one of the reasons for Hon. Downie Stewart's visit to London was to consult the authorities on banking questions. The Niemeyer report not only outlined the advantages of a central reserve bank, but also sketched the necessary steps to put the system into effect, so that the Government should experience little difficulty if it should decide on the recommended course of action. It is common knowledge here that the English banking authorities desire that a central bank be established in all British Dominions in order that the Empire might he linked up with the Bank of England, and thus have a uniform system throughout the Empire. In addition, bankers and economists point out that it is desirable in view of the fact that four out of six of the New Zealand banks are practieally or wholly controlled from Anstralia, that the Dominion should take all necessary steps to preserv3 New Zealand's entity in international exchange and currency questions.