WELLINGTON NEWS

Hokitika Guardian, 28 October 1925, Page 4

WELLINGTON NEWS

THE HANK OF XEAY ZEALAXD. (Special to “Guardi.-.n”.) AVELLIXCTOX, Oct. 2:!. Every election iisee the Exl'reme Labour Parly became conspicuously in i-y all tin- Soap-box ol'uiors of the party have apparently taken a special delight in attacking the Hank of Xew Zealand. Holiest eritieisin of banking methods in Xetv Zealand may lie lair, hut when one Hank is selected lor attack and the scope anil character of its operation and its figures misrepresented or liii'-cpiolecl. the attacks ho-

• ■oi)i(! malicious. In a dotthle eoltinin (list illation of banking inamtracies in a recent issue of a Westland daily, the halanee sheet of the Bank of Xew Zealand for last year is dealt with in a manner intended to deceive the

workers. ft was an exceptional year, hot for the profit, earned by the Bank hut fur two wind falls which helped to ■'■.veil the divisible balance. The actual net profit for the year was £735.832. I inline; Ihe war period and shortly afterwards the hank took up British ( mvoriiincnt securities which were sub-

s'T|uently sold at a profit of £148,1 12. Isii hcnuoiv profits previously withheld Iror.i (list riljtiiinn to provide for di"dits • oit iderecl deni,lfni were not rerpiiretl I if the nurpo.-c and were returned t" tlie accounts, and these profit' totalled £lB4. Kin. making the divisible halttnce £ 1.008.-Ilfi). These two wind falls were ilislinetly and separately siiown in the report for the year. In addition to the above there was brought forward. £421.958. the undivided profits of previous years. This brought the Lot at l alance available for distribution to

*; i. 490.307. The actual net profit earn ml during the vear was only £735.832.

cud t . earn this profit I lie capital employed totalled £8.549.8119. so that tlie net profit was c<|tt:tl to £8 12s (id pci cent on the capital employed. I lad ihe hank been socialised as Extreme Labour sit,tmesis there would have been in profit- at all. and tin' Bank of Xew Zealand like all other institutions utider the control of ;i Labour tioverumeiit would have sltown heavy losses.

•'Late enterprises in the Australian States, titicl especially in Queensland, have hicurred appalling losses and have proved a terrible liiirden to the taxpayers. SHEER STI’I’IDITV. This Westland paper states further: 'lf it (the Bank of Xew Zealand) granted credit at such a rate as left it no profit at all. industry would have been stimulated and tint' workers, having more employment, would have been able to improve their wanes ami conditions.'’ This is <|ttito a cent, and is the most amusing chunk of banking ignorance that hr,' ever appeared in cold typo. The credits advanced by the hank to meat companies, woollen mills, dairy companies and traders, manufacturers and di'tributors is the credits lent to it by depositors. If the haul; made no profit the deposiolrs would soon lose eonfidenee in the hank am! would call ill their deposits. Without the deposits there would lie no credits to advance at any rate of interest, industry would stagnate, winkers would be thrown out of employment, and many of them would he looking around for the nearest soul) kitchen to provide them with a little muiri-hmciit. The present banking system of the

world is the outcome of centuries of experience and Biuish banking is the most scientific and the most successful known to-day. The Bolsheviks tried a new system of banking not unlike wlmt the brain-storms of Xew Zealand desire to see established, but they had to retreat. The Bolshevik' were forced to recognise that no country could pet along without capital and that capital is obtained by the savings of the people who must he sure that they would l-e protected in the employment of their savings. XiU so very lone ago the Soviet Government found it ennvenwnl to rc'lore banking credit and other privileges to private linns. Ihe stand-

ard of living will improve where the volume of production is increased. Mr dames Hunts of Burns Philip and Co., of Australia, who has just returned from America stated publicly that in America the worker realised that it was his job that paid his wages. whereas in Australia and Xew Zealand, the boss was considered to do that. One wor iced for Lite benefit of the job, the utlter used the juft to pull the boss of the capitalist down on the off chance of pelting some of the spoil. It the workers would put a little holiest; info their work and worked like honest sellrespecting men, they would product more cntis'i'iuonrly there would be

omie to go round and a great or num her w mild bo benefit oil.