BANK EMPLOYEES AND THE COST OF LIVING

Dominion, Volume 1, Issue 160, 1 April 1919, Page 6

BANK EMPLOYEES AND THE COST OF LIVING

Sir,—Letters on tlio above subject wliV.ch have recently appeared in your papU' have stimulated me to take up my pen. Liko "Lancelot" and "Galahad," I ami opposed to trade unionism, but think tliej time is ripe for the formation of a bankers' institute. Such a guild should be; of an educational nature, with plenty of incentivo to study, and reward when examinations are passed. We are living in 100 enlightened au age nqt to feel that the present policy of promotion by favouritism and length of service should be> swpplunted by ability and examination tests. Further, an institute formed to improve tlie c-fficioncy of bank officers should', bo viewed favourably by bank directors, and would also bo a means by which they could be brought in touch with fucli problems as the present need for substantially increasing the deplorably inadequate salaries paid to bank officials. Why have we been so apathetic as to permit of the present 6tate of affairs,, with tlaxmill hands, men on the wharf,, and other unskilled labour drawing bigger money than bank managers? Well, Sir, I feel sure that it has only been tolerated because the loyalty of bank officers to their institution* has caustd them to sink self-interests and shouldei tlio burdens of tho' war , period. Now that the terrible war is over and tliei banks have come through with iminensei war profits added to their reserve funds,, and are stronger financially to-day than ever before in their history; it remain® to be seen what reward the staffs are going to receive for their loyalty. Banks in the Old Country have given a good lead'. Culling, from "The Economist" of February 1, the London County,, Westminster, and Paris Bank, Limited,, have raised tho salaries of their permanent staff on a very liberal scale, and have given a substantial cash bonus to the permanent and temporary staff at; home and tho men still serving with tnei colours. The board fully recognised that: tliis was no more than adequate to meet: the cost of living, in face of tho rise or prices. Further, Hie directors wanted to do something additional by way_ of recognition of exceptional service. Uiey proposed to give a special bonus in new fully paid shares nf each. They wished to apply the .£IIO,OOO . which they had set aside for the bonus in paying up £1 capital and Xt premium on nearly 70,000 i shares, and issuing them to their_ wholei staff, permanent and temporary, including the messengers, in the proportion of one share for every, J;2O of annnal salary whicii they wero receiving on December 31 last. In this form the bonus would, iu fact, exceed io per cent., as the market value of the shares would, they expected, be well over ,£2. In tlio easei of men on active service, their salary would be taken as tile amount which they would have been receiving in the ordinary course, had they stayed with them: that, was to say, their normal increase of salary during their absence would bo taken into account. Further, the directors were suggesting that tlio shareholders should set aside the sum o( .£100,009 as a permanent • war memorial for tha benefit, in the first place, of the children 1 , of those who had fallen, and afterward® of the staff at large. Among the uses of the fuiiid so set aside, it would be seen, there was a special reference to education.. He showed that while the present system of educating their staff had produced officers who could hold their own with any men in England, yet it was not the most efficient system-it was wasteful, of energv and wasteful of time. He> would like to see a system of scholarships established which would enable the most promising and ambitious of their younger men to continue their education while still with the bank, and to this end a fund such as they had before tlieni might powerfully contribute. The chairman said the problem which must needs give them the most anxiety was that of the future relations between the employers and the employed. The outlook wasi full of grave difficulties, but it could bo met if faced with courage, calmness, and a spirit of conciliation and mutusil selfhelp, such as enabled us to face the yet graver and more alarming prospect at the outbreak of the war. The report was adopted, and tho_ resolution sanctioning the war memorial fund was pass-

Increases as high as 100 per cent on pre-war salaries have been granted bv banks at Home. Why should bank clerks in New Zealand not ho relieved oi the anxiety of how to live up to their station in life in view of the ever-increasing urices? Thanking you, Mr. E<iitor, for your valuable space, and hoping that something definite will come of these efforts of knightsWof the round table.-I am, <!tc " SIR BEDIVERE.