BANKING IDEAL

Sun (Auckland), Volume III, Issue 834, 30 November 1929, Page 10

BANKING IDEAL

CREATION OF CENTRAL RESERVE NEW LEGISLATION SUPPORTED The advisability of developing the Commonwealth 'Bank of Australia along the lines of a Central Reserve Bank rather than a Peoples* Trading Bank was stressed by Mr. Thomas Buckland. president of the Bank of New South Wales, in his annual address to shareholders in Sydney yesterday. Mr. Buckland’s speech was drafted before the introduction of the Federal Treasurers’ Bill amending the Commonwealth Bank Act giving that bank special rights in regard to the control of gold coin and bullion. Over a period of years the Commonwealth Bank in co-operation with the Trading Banks has been gradually making progress toward becoming the Central Reserve Bank of Australia, stated Mr. Buckland, and thus the keystone of the financial arch. Consultations have been had with recognised authorities on this subject, and the principles as laid down by them have ever been kept in the forefront of the Board’s policy. To alter this p icy would be to destroy the work of years. The Commonwealth Bank woula then become involved in the ordinary vicissitudes of trade, commerce and industry in the same way as the Trading Banks are. As it could not then fulfil the functions of a Central Reserve Bank, being involved in the same way as the Trading Banks, and having its assets in the same largely un-liquid form as a trading bank must necessarily have, the support of the latter would of necessity have to be withdrawn. The financial position of Austialia would then revert to what is was in the first few years of this century, where every Bank had to stand on its own feet. Naturally the promoters of the Commonwealth Bank take pride in it. but would it not be an achievement far beyond what its sponsors intended were the present policy accepted and the Commonwealth Bank with the assistance of the Trading Banks allowed to proceed on its way to achieve the great and outstanding distinction of becoming, when the time is ripe therefore. the Central Reserve Bank of Australia?