SUN COMMERCIAL SERVICE

Sun (Auckland), Volume IV, Issue 1005, 23 June 1930, Page 11

SUN COMMERCIAL SERVICE

Special arrangements Pave now been made whereby inquiries from reader# in regard to commercial and financial questions will be dealt with immediately. While every effort is made to ensure accuracy in every instance, no responsibility can be taken for the information given. All queries should be addressed to the Commercial Editor. THE SUN. “Shirley": The Commonwealth Bank is in active competition with the ordinary trading banks, and, in addition, controls the note issue of Australia; it also acts as fiscal agent for the Commonwealth Government. A central reserve bank is primarily intended to serve as a rediscount bank and reserve depositing for member banks, and as fiscal agent for the Government. In Australia it would control and standardise interest and exchange rates, control gold reserves and generally take the lead in finance in the Commonwealth: it would get its capital from associated banks which would be member banks by Act of Parliament, and might also be subsidised by the Government; it would not pay dividends in the ordinary sense of the word. A postdated cheque is not a bill of exchange and banks will not discount it. From our reading of the last question we take it that it would be a case in London of “Selling a draft on New Zealand.”