Conflicting Opinion About Samoan Currency
pp. 120-121 · Read in the full issue
Samoan Currency
From Our Own Correspondent APIA, December 15. rpHE move to establish a separate JL Samoan currency which may have a different value from the New Zealand £ was severely criti cised in the New Zealand Parlia ment recently.
There is also some strong opposi tion to the move in Samoa, as many believe that it is to the economic advantage of the Territory to leave Samoan currency connected, as at present, with the New Zealand £ and Sterling. A separate currency would involve certain risks for a small and economically weak country like this Territory.
However, the select committee, set up some time ago, has recom mended to the Samoan Legislative Assembly that W. Samoa establish an independent currency and bank ing system under a Currency and Exchange Board of Control.
The Select Committee included the Hons. Tamasese, Malietoa, Anapu, Tualaulelei, Aiono Tifaga, E. F. Paul, L. M. Cook and, as ad viser, Mr. V. D. Stace of the Reserve Bank of New Zealand. Its report waII be debated at the March session of the Legislative Council.
It says that “in view of Samoa’s desire for self-government . . . the only
way by which the economic future of Samoa can be, to some extent, safe guarded . . is by maintaining control as far as possible over the economic state and relations of the Territory.” Under the present financial integration with New Zealand “the interests which will be considered will inevitably be those of the New Zealand producers and consumers.
These are not necessarily similar to th« interests of Western Samoa”—and thti Report goes to some length in explaining why.
The Committee concludes that s Currency & Exchange Board of Controc should be empowered not only to establish a separate currency, coinag* and legal tender, but be permitted to
ipreciate or depreciate the currency ithin a limit of 25 per cent, from its Jsting level of equal to Sterling.
Mr. Stace has recommended that a imoa Bank be owned jointly by the imoa Government, the Reserve Bank New Zealand and the Bank of New saland in the proportions of £70,000, 15,000 and £ 70,000 respectively. The ink would have at its disposal 3,000,000 in Sterling and overseas funds.
The Report notes the great success of e Bank of American Samoa in a rritory of considerably less potential ialth; and considers that without the tablishment of such a Bank in Western ,moa, complete government of the srritory by the people of the Territory »uld be impossible. At the same time stresses the fact that such a bank nld only operate successfully if it had e complete confidence of business at ime and overseas. This could only come out through wise and capable direction experienced men. Until Samoans are lined to occupy those positions New aland would have to provide the key iff.