P.O. SAVINGS BANK

Evening Post, Volume CVIII, Issue 135, 4 December 1929, Page 12

P.O. SAVINGS BANK

REPLY TO MR. JOHNSTON

Speaking in the Crown Theatre at Eastbourne last night, Mr. Nash attacked the policy of the Reform Party in connection with the Post Office Savings Bank, and stated taht the action of the Government in 1927 had resulted in a depletion of the funds of the People's Bank by £3,000,000 in one year, and an excess of withdrawals each year since the restriction of the deposits was commenced by the Government. The restriction by tho Government followed by the action of the Associated Banks in increasing their rates for fixed deposits had resulted in a transfer of between six and eight million pounds from the P.O. Bank to the private banks. The private banking houses had recouped themselves by increasing the overdraft rates; but the transaction had resulted in a depletion of the Government funds —and an extension of the control of credit by the Associated Banks. "The policy of the Labour Party throughout the years," said Mr. Nash, "has been to extend tho activities of the People's Bank," and in proof of its value to the people of the Dominion and the Government, he cited its remarkable achievements, as shown in the report of the Department. Mr. Nash said the Savings Bank had provided the Government with £50,000,000 of money, and had saved the taxpayer £500,000 per annum. It has paid interest of 4£ per cent, on current deposits, and after conferring these benefits on the community it showed a net profit of £81,057 — £67,000 of which had been transferred to the Consolidated Fund.

It wouid have been more in accord with justice and equity had the Government distributed a proportion of the amount to the employees of the Department to meet the just demands in connection with the application for salary readjustments.

"I have cited the P.O. Savings Bank," said Mr. Nash, "to rebut the absurd charge made by Mr. Johnston, tho Eeform candidate. Given the opportunity, the Labour Party will extend the activities of the bank to the fullest extent possible commensurate with sound financial principles."

The evidence as to the value of the Post Office service could be extended with proofs that the Public Trust, the State Advances, and other Public Services were rendering equally important contributions to the advance of the Dominion.

Mr. Nash was accorded a vote of confidence. Mr. H. M. Jones, Mayor of Eastbourne, presided.