"THE PEOPLE'S BANK"
SOMETHING OP ITS EARLY HISTORY HOW WELLINGTON HAS CO3IE ON It is just over 51 years ago since the Post Oflice Savings Bank was established in New /calami. On February 1, Mi 7, business was commenced at livo of tho principal offices in New Zealand, tho convenience being extended to ;I0 other offices on the iirst of the following .April. Dr. Knight, then Auditor-General, was responsible for tho organisation and initiation oi' tho system, which was immediately placed in the hands of tho Controller. who also undertook tho management of money-order business. It is a matter of record that at first tho ConIroller overtook the whole of the head offico business without a. stair and with very little clerical assistance, so much so that the Postmaster-General reported 'that lie believed there was hardly an instance on record in tho Public Servico in which go important nu improvement as the opening of savings banks really constituted, had teen introduced at so small an increase in the public expenditure. although in tho following year lie reports that the increase of business hud rendered further assistance indispensable. The Savings Bank administration has ever sought to live up to its reputation in I his respect. Tho average cost of encli transaction during tiio first year of its existence was slightly over Is. 30d. it has for some years past fluctuated between 3d. and I}d., notwithstanding tho , fact thai: the business has n> enormously increased and that the head offico staff, i instead of consisting of the Controller j alone, has now « Controller and Assistant Controller, and officers to tho num- ' ber of 174.
I l ? rom five offices transacting savings bank business in Pebruary, 1867, the Dumber liiicl increased to 791 at the end of the year 1917. This large number of offices is sjii'jyul throughout the length and breadth of the Dominion, giving extended facilities to all classes of the public to place their savings in the custody of the State institution, and the figures which will be disclosed later on show that the public has availed itself very largely of the privilege offered, and showed a continued and increasing confidence in the Savings Bank, At the initiation of the scheme, 152 accounts were opened, and these, at the close of the first year, had increased to 2156; with a credit balance of it7l.]9S, a result which was deemed very satisfactory, although tho figures lade into insignificanco beside the results shown , at the end of last year, when 566,351 accounts remained open with a total credit balance of .£29,196,390. In ISG7 Otago was feeling the full effects of tho gold, rush, and consequently not only received a larger amount of deposits and paid out more withdrawals than any other district, but also had to the credit of its depositors more money than any of the provinces into which the colony was then divided. Next to Otago came Auckland, soma way behind, Canterbury running Auckland very closely !°'i , p ' act ' Wellington a ™ t l| fourth. Now tho positions "are-.— \\ olhngton first, Auckland second, Can-rm-v. and ota «° fourth. J he first Controller of Savings Dante was .Mr. W. Pagan, whos-s namo is almost unknown to the present generation.
Scope and Advantages
Gradually and with ea'refill step 3 the havings Bank has widened the scope of its business, according to tho needs of Iho public, until it now provides a convenient and safe means for depositing moneys not" only of those who have Hiiall amounts to save, but also of almost #\ery class ot the cohihiuiiitv # including a multitude of provident, charitable, religious, athletic, and other Jion-mercan-ile. societies, and trust funds of those Io whom the salely of tho security is of more importance than a high rate of interest. The only bar to Iho deposit of money is practically the existence of another account in the name of the individual or body desiring to make uso of tho institution, and although 110 interest is paid Io ordinary depositors on the balance of any account which exceeds A'IOCO, fliere is no limit to the amount which may bo placed in tho bank for safe keeping- The interest-bearing limit has" been from time Io time extended until in 1913 the amount was raised lo that already mentioned.
In, 1567 the j'atOvS ol' inierc.sl payable mi Savings Bank accounts were fixed at I per cent. 011 the balance at credit not exceeding J?200, ami 3 per cent, on that part of the bulanco exceeding .£2OO, but not exceeding Jl.iOfl, beyond which sum no interest was paid. The rates ivero increased in 1874 to tj per cent, uid i per cent, respectively. After this iliero was a gradual decline until in November, 1807, they wore down low as 3 per cent, and 2} per cent. The next important change took place in January, l'JO", when the interest-bearing limit at tho lower rale was raised to .£IOO, and the maximum amount upon which interest would he allowed to .1000. The last change took place on January 1, 1 <11 -f, wheu the rate of iulerest was jixed at JJ per cent, on that part of the balance not exceeding .CiUl), and 3 per cent, on the vemaindor of the balance, with an inter-est-bearing limit of .CIOOO. It will thus be seen that tho rales payable by the Savings Bank have fluctuated'generally in accordance 'with Ihe market value of money. It is surprising how large a sum is earned in total by the depositors in the Post Office Savings Bank. Last year the interest credited to depositors amounted to no less a sum thaJi .£947,821. The bulk of the .£29,000,000 held by the Savings Hank is invested in New Zealand Government securities, some in the securities of local bodies, and a small proportion in securities issued by other States of the Empire.
Where New Zealand Leads. New Zealanders possess .in advantage which, generally speaking, is not common to the savings banks of other countries. At eighteen principal centres, evenly scattered throughout tho Dominion, they may make withdrawals of any sum -without having to give notice beforehand. Tho English system, upon -which ou.r own was originally based, centres all its ledger transactions in I he head office at J-011-don. Not only does tho provision of these, eighteen ledger centres afford those living within I he vicinity the privilege already mentioned, but it enables those in the smaller towns to withdraw their money much more quickly than if their notices of withdrawal had to como lo Wellington. Each centre has around it a district ajid the accounts of depositors living therein are kept in tho central ledger town. Jn order to overcome any difficulties consequent upon depositors travelling to piaces outside tho district in which I heir accounts are kept, a system of cross-entry deposits and withdrawals has been set up, enabling depositors, for a period of three months, to both deposit and withdraw from their accounts iu another district. After that time it is considered that they should apply for tho account to be transferred. A further extension of tho system has b?en mado in the direction of meeting eases of urgency by allowing depo-diors who do live at one of (he central towhs to make a withdrawal, by telegraph, tho fee fir which has been fixed at Ihe small sum of (id. per transaction. To encourage tho use of the Savings Hank by children, a system of stamp cards has been set up. Each card provides spaces for twelve one penny stamps. These may bo purchased 0110 or two at a time, affix.ed lo tho card, and when the card is full it will bo accepted, if tho stamps are undamaged, as a deposit of one shilling lo the account of any depositor. One shilling, it imiy bo remarked, is tho least sum which'the bank will accept. Nominations, In 11)07 a system of nominations was inaugurated. This permits any depositor of l.he age of 21 years or upwards to nominate any one or more persons to receive, upon his or her death, the amount at credit of a savings bank account, 'these nominations, which must be on the form provided by the Department, are sent into the Department for regislralion, and have Ihe force of a will, with this advantage: that tho persons nominated by the depositor do not have lo lake out probate or Idlers of administration, but may receive tho money at any tiiuo sot less than a mouth after tho depositor's death. As this most convenient system becopws knovpa
it is being more widely availed of. The •special object with which it, was set up was to save depositors the expenses generally iittendant upon proving a will or obtaining letters of administration, and it may be fairly said that it has achieved this in every respect. In case a, depositor dies without making a nomination or a will, if the amount at credit does not exceed .£IOO, it may be paid to tho next-ol'-kin, or any person who can establish a right to payment, without the 'production ol prohato or letters of administration, but if the amount exceeds =!:100 probate or letters of administration must in every case be produced.
Among other privileges which iiav& been granted are thai; depositors having policies with tho Government Life Insurance Department may linvo the amounts of their premiums debited in their savings hank accounts as they become due, thus saving them a considerable: amount of trouble and ensuring that tho important matter of keeping :v policy alive will not be overlooked. A similar provision lias boen made with reference to depositors who are. members of the National Provident Fund. These too can giyo an order which will enable the superintendent of that fund to withdraw tho amount of their contributions from tho Savings Bank. Provision has also been made for joint accounts to bo opened, in which case the amount can only be withdrawn upon the signatures of each of tho parties to the account being furnished. Payment by chcqucs having teen so widely adopted in New Zealand, in ISO.'l it was decided to accept cheques as deposits to savings bank accounts. These are treated in accordance with the practice of commercial banks, and the amount represented by them is not available for use until the cheque hns been duly honoured. The Savings Bank will also accept as deposits interest coupons issued by the New Zeaiand Government on its debentures and interest warrants issued by the Treasury.
A Link With the Old Country. The public convenience was further studied by a system inaugurated in )!)07 of the mutual transfer of savings bank accounts between New Zealand and tho United Kingdom. This was, in 11113, extended to the savings banks of Australia, aud now includes both the Fedal'al Bank and the independent banks of the various Sta.tes. A further extension of the usefulness of the institution was made in 1808, when home savings bank boxes were introduced. These provide depositors with a small yet secure metal box m which to accumulate small sums of money v/hich would not otherwise be considered of sufficient importance to save or to specially deposit in the Savings Bank. A master key to these boxes is kept in tile office, and upon presentation at any time the amount of small change saved tt'erein is counted in the presence of the depositor, and accepted as a 'credit to his account. Theso home savings banks, as they aro termed, have become exceedingly popular, and the demand for ihein is so great that the supply has been almost exhausted. This, is due to the fact that the factory cf tlienianusaeuirers is now entirely engaged in the production of munitions of war. The boxes have been. standardised, and it is not desired, for obvious reasons, to depart from tho present pattern. ■Although the number of offices for the transaction of savings bank business is so widely spread throughout New Zealand, the convenience of depositors who rositle in 'sparsely settled districts where there is no branch of tho bank is met by a provision which allows them to send free registered letters to tho postmaster of the nearest savings bank office, containing the amount of their deposit and pass-book, and to make a withdrawal by registered post in a similar manner. To meet those who are unable to personally attend when desirous of withdrawing money, a special form of authority has been prepared.. This, if signed in the presence of a justice of t.lio peace or some citizen well known to tho postmastor, or in cases nf sickness by .a medical attendant or a minister of religion, will enable any person so authorised to obtain a withdrawal of the amount desired.
Many years ago the Department, which in matters of administration endeavours to move with tho times, abolished the old-fashioned book ledger aud inaugurated a system of ledger cards. Fur each of its Still,ooo depositors a ledger card is prepared and these cards are kept sorted in numerical sequence. On tho back of each card is ixisted the specimen signature which the depositor gives when making his first deposit. II can thus readily be referred to by the ledger clerk when posting a withdrawal prior to payment being made by the teller. The cards have proved most successful, and on no account would ihe old system be reverted to. It also i uabled tho Department, in 11)09, to di-.pen.so with the identification signature in the passbook, which, prior to that dale, was open to serious objection, but could only be efficiently met by tho adoption of the card system.
Since the outbreak of war, power has been given to the Savings Bank to accept. from the trustees of ixitriotic war funds fixed deposits for a period of five years. The amount which will ibe received must not be less than <£'50, and tho interest paid ou. theso deposits by virtue of their being placed ior a term of years is 1 per cent, per ai.iium.
'Every endeavour has been made to meet the extraordinary •circumstances brought about by the war in connection with the savings bank accomi's of members of the Expeditionary IV: cos. Limitations which are imposed on the ordinary depositor have in several cates been removed. Special accounts ore opened for all those who wish to nllot their deferred pay to a savings bank account, even though the depositor may have a private account open already. To sucll accounts tho allotments as received monthly from tho Defence Department are duly credited, thus enabling our soldiers to accumulate at interest the pay which is not receivable when on active service.
Special facilities are also afforded to soldiers on ordinnry or sick leave in England or France to withdraw an amount sufficient to onable them to properly enjoy a well-earned rest from the hardships endured on the battlefield. By a special code the authorities in London cable to New Zealand, aud in response to these messages the Post Office withdraws the amount from the soldier's account and arranges for its transmission through the authorities to the soldier. Tho system has the advantage of a minimuni delay, and is known tn be widely appreciated by those for whose benefit it was inaugurated.
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Dominion, Volume 11, Issue 231, 18 June 1918, Page 7
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2,542"THE PEOPLE'S BANK" Dominion, Volume 11, Issue 231, 18 June 1918, Page 7
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