THE RESERVE BANK

Rotorua Morning Post, Volume 3, Issue 638, 16 September 1933, Page 5

THE RESERVE BANK

(Press Assn

BRITISH PRESS APPROVES OF EXPLANATORY ARTICLES SOUND POLICY ENSURED

. — By Telegraph — Cepyi lght).

London, Sept. 14. Referring to New Zealand's Re■serve Bank proposals the London Daily Telegraph says Mr., Coates has done well to publish explanatory artieles in New Zealand in view of the past opposition, especially from banking interests. It adds: "I Britain there will be general agreement with Mr. Coates' assertion that such vital matters as eontrol of curreney and credit should not be left in the hands of commercial hanks. The scheme is framed on conventional lines with proper safeguards to ensure immunity from political infiuence. It should also ensure the sound direction of uioney and credit and exchange policy, and do mtich to facilitate cooperation with Britain and other mem bers of the imperial family." An Efficient Rudder The Yorkshire Post devotes a ldng leading article to the subject, stating inter alia: "The New Zealand proposal is to be- welcomed. The social usefulness of commercial banking institutions would be inereased, not diminished by the existence of a coordinating body. The real objective of a reserve bank is to give the banking system an efficient rudder, while leaving the engines of private -enterprises to work unimpeded. _ The existence of a banker's bank is required by a fully developed economic system. Only by this means can a nation's banking resources be fully utilised from the aspect of economic development of the Dominions themselves. The movement to establish central banks is welcome."