WELLINGTON NEWS

Hokitika Guardian, 17 August 1926, Page 1

WELLINGTON NEWS

POST OFFICE SAVINGS BANK. (Special to “ Guardian.”) WELLINGTON, Aug. 13. This institution serves ,a very excellent purpose, hut it cannot be said that the people have exercised any great degree of thrift, during the past five years. The accounts of the Post Office Savings Bank are made up to 31st March, and although during the past five ydus the deposits have been large, it is unfortunate that the withdrawals have been larger, so that in each year except one the withdrawals exceed the deposits. Titus for the year ended March 31st, 1922, the withdrawals exceed tho deposits hv the substantial sum of £1,110,234, in 1923 this excess totalled £1,086,836. In 1924 there was a break from this, and tho deposits show a small excess of £88,051 of deposits over withdrawals. However in the following year the withdrawals were again in excess ol the deposits by £880,713, and for the year ended March 31st, 1926, tho withdrawals were again in excess of the deposits by £768,884. Notwithstanding these heavy withdrawals tho aggregate at credit of depositors shows a very substantial increase. On March 31st, 1922, the amount at credit of depositors was £43,841,701, and on March 31st, 1926, the totul had expanded to £47,911,322, an increase of £4,009,618. This was brought about by the interest paid on deposits. Thus in 1922 the interest credited to depositors was £1,599,907, and for the year just closed tho amount so credited was £1,731,578. At the close of the financial year 1922 there were 678,930 depositors, and on March 31, 1926, tho number had risen to 758,155, an increase of 77,225. The average at credit of each depositor in 1922 was approximately £64 11s, and tho average on March 31st, 1926 was about £63 4s. This does not show any oxansion in thrift-, or any growth of tho saving habit. For the throe months April, May and Juno this year tho deposits exceed the withdrawals by £323,884, which would seem to indicate that the wage-earn-ers arc again becoming thrifty, but that unfortunately is not the case, for in tho corresponding three months of last year tho excess of deposits (amounted to £533,921, or about £200,000 more than was saved in the three months of this year. The probability is that at tho end of the current year, the withdrawals will again exceed the deposits. It is Itclieved that the Post Office Savings Bjnnk is being used by certain sections of the community to hold their savings temporarily pending investment, and no doubt a good deal of the amounts withdrawn have gone into house property. MEAT INDUSTRY FINANCE.

What most of the meat freezing companies, especially thoso in the North Island, need just now is additional (vipital. Most of the capital that they began operations with, or acquired since has been lost, and must therefore be written off. The shareholders of the Wellington Meat, Export Company have decided to write down tho capital by £150,000, and to issno 8 per cent preference shares immediately up to £50,000 to provide tho necessary working capital. Under normal conditions tho company would no doubt ha ye. stood a very good chance of obtaining tho money, for after all its machinery is intact and losses cannot go on continuously. But the conditions are not normal, they have been made (abnormal by the Meat Control Board. Perhaps it is the irony of fate that this Board which was .set up to foster and help the industry should by its actions have practically ruined it. Tho Wellington Meat Company to carry on must raise about: £50,000, and by offering 8 per cent, interest is endeavouring to get the money from the public. Those with money to invest are not all fools, and the history of the industry under the regime of tho Meat Control Board has not boon encouraging. It is stated that the company hopes to get the money from tho farmers, but the farmers, especially the sheep farmers have had la had .season, land it is doubtful whether many of them have funds to spare. Tho position is exceedingly rough on tho shareholders of the company, who have been denied the right to sell their assets for £290.009, which would have yielded them 8s in the £. This is (he achievement of the Meat Control Board, the members of which seem capable of destroying but incapable of any constructive policy. Ihey hair no alternative to suggest to the Wellington Meat Export Company Jor refusing to allow tho sate of the works to Borthwicks. This power of veto the Board has derived from Parliament, and since the Board has virtually ruined the Wellington Meat Company the latter surely has a moral if not a legal right to compensation. Tho meat industry occupies a very ugly position just now.