THE BANK RETURNS.

Dominion, Volume 1, Issue 26, 25 October 1907, Page 9

THE BANK RETURNS.

- - Si rj —Press comments on those matters aro. at all'times interesting to me. , Ono tiling has always struck lri'y amused fancy, and that is the implicit faith . the' press of this country lias in the doctrine of "Whatever is;, is right." You appear to consider an excess of liabilities ovor assets' of £1,284,901; and tho mad folly of lending Dominion savings, to London speculators gcod banking. You carefully refrain from enlightening your 1 readers as"to whiph of our banks is lending the most money ■in London,' which Consols liavo touched 82, aiid tho whble'financial outlook is exceedingly Your romarks ro free and fixed deposit movoments aro hardly of-a nature in accprd with good banking principles. I consider low rates of interest for deposits, consequent on wrong principles of advances, is responsible for the hc:.vy fall in deposits 1 and increase of frco moneys. The banks have for a long time past, borne heavily on their fixed depositors in the matter of i interest. .-They have also been very conscrvativo in their attitude. to borrowers. Tho result is that wealth production has been stifled tri'a great extont, and tho boasted prosperity of the Dominion lias only reached a small proportion of our people. The abnormal increasn of freo deposits would become an ugly problem if they should becomo suddenly, from any causo, required by their owners—panic or legitimate needs—tho coin holding being only

£5;003,83 f J, -against -a .total of notes in circulation and money on demand amounting to £13,551,861. I think the public should learn by your paper which of tho banks, holds the strongest coin reserve against the demand liabilities. The coin reserves should not bo lumped as you liavo it. Let the public know which is tho strongest bullion holder, .111 all fairness to such institutions as evince tins necessary prudcnco. ' , ' The banks have had at all times the competition of savings banks, deposit companies, and othors; so you have, lii my opinion, missed tho mark in trying to locate a cause for tho shrinkage of fixed doposits. Pardon my suggestion regarding the comments of tho pross on banking matters. The woaknoss is mo doubt largely duo to the precious "sworn averages" furnished by tho banks to the Government. It is time the form, of these should be brought into lino with; tho requirements'of common sense and the protection of tho many depositors in tho banks; yea, and in tho interests of the banks' own proprietors or shareholders. Tho press and public may bo excused for not being able to fully understand tho banking position with only t'lieso quarterly statements to rely on, but there is no excuse for tho perpetuation of suclv ignorance by allowing, as has been the case for'many years, these hold inanities' to continuo. .There is great need for improvement,in the. form of-the§e statements and in the" banking methods of this Dominion. I say this from twenty-five years experience : as a hanker and writer on financial am, etc.,; ' j; r ' Wellington, (October 23. . , .