"THE PEOPLE'S BANK"

Dominion, Volume 11, Issue 229, 15 June 1918, Page 8

"THE PEOPLE'S BANK"

HOW FARES THE POST OFFICE BANK 1 A WAR-TIME REVIEW Thero were quite, a crowd of khakiclad figures beforo the Post Office .Savings Dank counters on a certain day during the current week, which prompted an inquiry at headquarters above as to how tho "People's Hank" was faring during tho heat ami burden of wartime. The figures, which were readily made available, weru so extraordinary when explained that they are easily worth making public, a.s a very large percentage- of the community are directly interested.

During the past ten years the progress of tho Post Oflico Savings Bank may be fairly termed remarkable. In 1908 the total amount deposited was .13,674,075. In l<ll7 the deposits amounted to no less a stun than i17,10U,520. In IMS tho withdrawals were »tt),417,520, and in 1017 i;u,llil,llji). II; will thus be Been that although the tremendous increase in business affected alike the deposits and withdrawals tho ratio of increase in deposits was considerably higher than that in withdrawals. This is evident from the fact that whereas tho excess of deposits* in 1008 amounted to .£256,255, in 1917 it had risen to ,£2,645,.%0. In other words, the net n-mount saved in 1917 was as much in five weeks as it was for the whole vear in 1908. Nor did tho extent to which the bank is used fail to keep pace with the increase in the population, for the number of Savings Bank accounts open in 1917 has increased to 560,351, as compared with 312,077 in 1908, while the use by the people was thus increased, the average amount standing to the credit of each depositor was also Taised from .£35 10s. Ud. to .£sl. 11s. OSd. In l<loß the bal-ince at credit of depositors was On December 31, 1917, it was A' 29,190,390. Nothing further is required to show the widespread use and popularity of the Savings Bank in New Zealand. At a Minimum Cost. This huge business was accomplished at the minimum of cost, the cost per transaction in 1017 having been reduced to slightly under 4d. In the United Kingdom the cost is approximately 1 4-5 pence per transaction. The figures are not available in this direction for the Savings Hanks of other countries. It is interesting to know that whereas in New Zealand the average amount per head of population standing at credit of depositors' Savings Bank accounts amounts to .£26 12s. 2d., the average in Australia is ,£2O 11s. Id., anil in the United Kingdom M 2s. Bd. The Effect of War. When in August, 1914, war was declared by Ureal Jjriiain, a very cousulerabla nervousness was exluuued by depositors in connection with the aiiiouu-.o heli by the tonic, ami very heavy wiljiurawais were inuue. The matter was, however, successiully hanuiud by those in charge, and at no time was tils) bank in any diliicuity. Within a lowweeks the pubuc conhdeiiee was restored, and the money which had genu uut commenced to Mow in again, with the remarkable re:>uii that ut the close ul 1911 the excess of deposits over withdrawals iur tilj year was uore than hve times the excels of deposits over withdrawals iiurnig tho previous year. Thi) elfect of tliu war upon the Savings Sank hits indeed been sucli us lew people would have anticipated. A comparison between periods prior to the war anil those during its continuance will make this clear, t.g., m tlie tiist seven months of 1911 tho excess of deposits over withdrawals was J;8IU,I)1O. In the seven months of 1917 the excess of deposits over withdrawals was .1:3,181,137. The excess of deposits for the last complete year prior to the war, namely, 18W, was i2-15,2-IS. Tho excess in 1917 was .£2,1)45,360. The fact mentioned above, that the excess of deposits during the first seven montlis of .'ll7 was greater than tho excess during the whole year, brings to mind thiit Hie depositors of the Savings Hank- have withdrawn a. total for investment in ' the recent War Loans floated in the .Dominion of a known sum'approximating =C;i,700,U00. There! may hnVo also been a very considerable amount withdrawn for this purpose ■which tho Department has no means of tracing. Alter four years of war the confidence of the public in the Savings Bank remains unabated. The. amounts of deposits are larger, the withdrawals less in proportion, and the balances at credit increasing at a rate never before approached 'in the history of the Dominion. The staff, in common with that of other institutions, is suffering severely from the drain made upon it by providing men for tho Expeditionary Forces, and with the exception of tho senior and older officers, important duties are being entrusted to women and lads. But the strain upon .tho bank on necount of the vast number of transactions and tho hugo amount of money handled is nowvery great, and in order to. conserve its forces as much as possible it has been decided that as from July 1 the hours of business will bo from 10 a.m. to 3 p.m. As in the past, however, it is anticipated that all. difficulties will bs overcome and the bank continue to afford the public tho facilities and privileges of which they have shown such great appreciation.