P.O. SAVINGS BANK

Evening Post, Volume CVIII, Issue 136, 5 December 1929, Page 10

P.O. SAVINGS BANK

WHY DEPOSITS WERE REDUCED

Labour's allegations that at the dictation of the banks and the moneyed class the Eeform Party had cut down the amount that could be deposited in the Post Office Savings Bank was refuted by Mr. Johnston, speaking at Alicetown.

Mr. Nash was an able financier, said Mr. Johnston, and he should be asked whether ho would advise his party to accept deposits which postal officials said would be ruinous to the Post Office Savings Bank. The late Mr. Massey had raised the amount which could be deposited in the Savings Bank to. £5000. He did this against the advice of the permanent officials of the Post Office, and with the example before him of England and Australia, who had never done it Events proved tlie postal officials right, and to preverat large depositors making a convenience of tho bank the amount was reduced. The large'depositors, if they so desired, could lend their money to the Government for long periods by investing in. Government bonds. The position was that tho Post Office Savings Bank was in jeopardy when holding th.'ese large deposits, which could be withdrawn at any minute, and it was on the advice of the permanent officials that steps were taken to reduce the amount that could be deposited. It was a deplorable thing that a man of Mr. Nash's ability should not tell the electors the true 6tory, but try to make political capital and raise class prejudice over tho matter.

Mr. C. "YV. D. Bell presided over tho meeting, and at tho close Mr. Johnston was accorded a unanimous vote of thanks and confidence.