SERVICE GIVEN BY BANKS

Hawera Star, Volume LIII, 15 June 1933, Page 7

SERVICE GIVEN BY BANKS

LATE EDITION

MUCH OF CRITICISM UNFAIR

STRENGTH IN TIME OF CRISIS

AID IN WORLD DIFFICULTIES.

NATIONAL OUTLOOK TAKEN.

(By Telegraph—Press Association.)

WELLINGTON, June 15. _ The opinion that the banks should take action lit once in the interests of the community to combat the prevalent iii-i'eeling against them was expressed by the president of the New Zealand Bank Officers’ Guild, Mr V. C. 'S. Edwards, in proposing the toast of “The Banks” at the annual smoke concert last evening. “In view of the great .services which have been performed by the banks it seems strange,” said Mr Edwards, “that there is so much ill-feeling against them in practically every section, of the community. So much that is unfair is spoken and written against them that it seenis strange that they have taken no action in their own defence. I would respectfully 'urge them to do so, if hot in their own interests, at least in the interests of the community at large. “A. desire for the socialisation of credit is rapidly gaining ground, and if the banks are_clesirous of combating the insidious propaganda against the present system of private banks it is desirable that they at once take action. It is necessary that the hanks should justify themselves in the minds of the public. As it is, their-detrac-tors and calumniators have a free field.

T ‘The matter is of great importance to the guild, which views with apprehension the continued silence of ' the banks in the face of the great injustice done to them,” said Mr Edwards. “I feel confident that the members of the higher executive of the banks will eventually appreciate the guild’s attitude, and wilt make a move in the desirecl direction.

“A noticeable feature of these troublesome times is. the way in which the trading banks of the Empire have .been able to stand up to adverse conditions. We have not heard of one failure among British banks, attributable, no doubt, to the sound and'conservative lines on which British banks operate. Our own banks operate on the same sound lines', and the community owes much to the higher executive officers of our banks. “It is not hard to visualise the many and complex problems these gentlemen have had to face and! solve during the past few years,” concluded Mr Edwards, “questions not so much of banking as of national importance, and in solving these problems the banks have in 'many cases arrived at decisions very much to their own disadvantage, because they held that national considerations were of paramount importance.

DANGER OF PALLIATIVES.

MUST LIVE WITHIN INCOME.

A warning against meretricious schemes and would-be palliatives was sounded by the chairman of the Associated Banks, Mr J. T. Grose, replying to the toast of “The Banks” at the annual smoke concert of the New Zealand Bank Officers’ Guild at Wellington on Wednesday evening, reports the “Dominion.”

“It might seem on the face of it that the banks are ‘drawing into their shells,’ but such is not the case,” said Mr Grose. “We in New Zealand should live as far as possible within our national income, and, above all, we must keep our heads. Chaotic conditions such as we are now experiencing are bound to produce a crop of unsound and meretricious schemes and wouldbe palliatives. It is perhaps natural that people weighed with adversity are only too eager to grasp at straws, but they would! be well advised to leave such things alone. Tinkering with currency has neyer saved any country, but has brought many into troublej and devices for dealing in credit on anything but sound and tested business lines are likely to do incalculable mischief.”

As an indication of how the depression had restricted banking business and business generally, Mr Grose mentioned that, as compared with three years ago, bank advances had fallen about £8,000,001) and bank deposits had decreased more than £1,000,000, the increase in the fixed deposits being about £6,000,000. Those figures, however, did not take into account Government finance.