"NO JUSTIFICATION "

Evening Post, Volume CIX, Issue 37, 13 February 1930, Page 11

"NO JUSTIFICATION "

INCREASED BANK RATE COUNTY COUNCIL ALARMED (By Telegraph.—Press Association.) NEW PLYMOUTH, 12th Feb. "This is a bit of a staggerer," exclaimed the chairman of the Egmont County Council when a tetter was received advising that the bank interest rato ou overdraft had been raised from 6i per cent, to 7 per cent. Con siderable comment was made by the meeting and it was decided to write to the Minister of Finance stating that the council could see no justification for the increase and protesting. _ The banks were making good dividends for their shareholders and were "simply rooking the council, continued the chairman, who could see no reason justifying the increase. To increase the rato at present was, he considered, entirely ""unfair to local bodies. He believed the money could bo obtained from other 'sources at less than 7 per cent. . A protest should certainly be entered, declared Councillor . Tosland. If no protest were entered "they" would think the council and bank clients would sit down and take anything. The matter should be considered by Cabinet. If banks charged 7 per cent, upon giltedged securities they would charge 8 per cent, upon other securities. The banks were ha/ing. a hard struggle to ma&e ends meet, Mr. G. Gibson said. '.' He had been told so by his banker. .•■'.' The chairman: "Nonsense; they are making pleni,/ of money;" Mr. Gibson: "I did not say I believed it." . ■- ■- The chairman: "The bank rate in England is down to 4J per cent, and yet we have to pay seven."