CENTRAL BANK

Rotorua Morning Post, Volume 2, Issue 353, 14 October 1932, Page 5

CENTRAL BANK

("Post" Special Cornmissioner.)

CONSIDERED ADVISABLE BY EXPERTS AT OTTAWA

Wellington, Thursday. Reference to the proposal to form a central hank in New Zealand was made by the Rt. Hon. J. G. Coates in the course of his statement upon- the Ottawa Conference, subriiitted to the House of Representatives last evening. — "The control and organisation of banking within countries of the Empire were discussed by the Ottawa Conference," said Mr. Coates. "These discrissions are not the subject of a specific resolution or reeommendation, the view was taken by some that actiori in such matters was the responsibility of the respective governments represented at the conference. However, it was certainly the general opinion that some form of central control, such as that usually obtained by means bf ri central reserve bank, is important and essential. "New Zealand is almost unique iri the British Empire in being without a responsible organisation of this riaturb. The riiobilising of credit tb ensure its most effective use, and the Stabilising of our currency in terms bf sterlirig at the apprbpriate level are problems iri which the machinery of ri central bank could materially help. I do riot by any means imagifte that it Would solve all qur problems. But after discussions at Ottawa with most competent authoritieS I am satisfied that the ereetion of ri cefltral bank in New Zealand will be a step in tlie riglit direction."