STATE BANK

Hokitika Guardian, 6 May 1922, Page 4

STATE BANK

MR MASSEY’S VIEWS. IllY TELEOItAPn —PER PRESS ASSOCIATION] WELLINGTON, May 5. When Mr Massey was in Gisborne bo was approached by Mr Francis Stafford oh the subject of a State Bank, and, in replying to the interview ,he promised, on bis return to Wellington, to send a written reply. Tn reply, Mr Massey analyses the assets and main figures in the balance sheet of the Commonwealth Bank, lie says lie is disposed to view with favour any SUitc Banking Business under exclusive Government management. M,- Massey remarks The profits made by the Commonwealth Bank during the If) years for which I rave complete figures have amounted to £3,451,305 13s B)d. ' That' sum is equally divided between the reserve and redemp- , tioii funds of the bank, and it actually represents its sole capital. The greater' part of the bonk*A ' general business Consists of the accounts of tlio Federal and State Governments, with their many branches of activity, and of the accounts also of quite a large number of’ local JiodiesV "As a. matter "of fact, its ordinary advances (apart from Government accounts) merely amounted last year to £18,6ij7,92l ’ That sum

including loans to local governing | bodies. It is evident from this that the, trading public is not receiving any | great amount of consideration from the Commonwealth Bank, and, contrasted with similar advances made by the i Bank of New Zealand during its last j financial’ year amounting to £*32,718,lGtb such a result can only he regarded as distinctly disappointing by the advocates of Skate banking in tin's country. 1 am satisfied that we can show better results under our existing method of j doing business than we should he able to do with a State Bank in existence in New Zealand. The Government re- , c-eived‘from t)ie Bank of New Zealand j last year a total of £588.000 in the shape of taxation, and its share of the bank’s profits. 7*ke Commonwealth hank contributes nothing to the taxation revenue of the Commonwealth or the State Governments .and T believe it is even exempt from local rates. So far the Federal Government of Australia has not received a penny in the shape of revenue from tin's hank.