PRIVATE PROPERTY

Rotorua Morning Post, Volume 3, Issue 697, 24 November 1933, Page 5

PRIVATE PROPERTY

(Press Assn.-

CdMMANDEERlNG OF RESERVES CONDEMNED IN LONDON A LITTLE DESGREDITABLE

-By Telegraph— CopyrlgHt).

(Rec. Nov. 24, 1 a.m.) London, Nov. 23. Commenting upon what it describes as an undesirable feature of New Zealand's Central Bank, the Financial News says : "Although there might have. been some justification for conmandeering the reserves of the domestic bapks-in 1914, there certainly is none now. Firstly it is- extremely unusual and not a little discreditable for any Government to confiscate property belonging to foreign iiistitutions and the f act that the New Zealand regulations may have been partly responsible for. the ownership is neither here nor there. Secondly, since the Government itself has taken a direct hand ,.in depreciating the curreney and has thereby diminished the value . of the banks' riet assets, the. gold was the banks' only proteciion and any increase in value may be considered, 'in equity, as belonging to them but the most iniportaht o.f all is the f act that since 191-4, there has been an embargo on the export of gold qoin so that for .19 years, the baiiks have been compelled td keep a large part of their fuiids locked up although their obligation tp make payments in gold has been suspended and gold has no relation to the curreney systam. In these circumstances, it can scarcely be said what sort of asset the banks' gold can be considered. It seems to be an investment like anything else. To rnost people here it will seeni that these ingenious theories serve principally to cloak the fact that a windfall of profit of nearly £4,000,000 in New Zealand curreney has tempted the Treasury too much. Let that profit remain where it properly ,belorigs."