PRIVATE SAVINGS BANKS

Hokitika Guardian, 20 July 1927, Page 4

PRIVATE SAVINGS BANKS

A RAID BEARED. AECKLANV), July IS. An implication in the remark by t.uo Minister of finance, the TTon Downie Stewart, that the profits of private savings banks should tic ’‘devoted to national objects.” is strongly rcscmtcd by the champions ol the' A.u< klalld Savings Bank. The Minister's comment was made during a, di.xcussi; :i in the House' on Friday mi the Savings ißank Act Amendment Bill. Resentment is felt in city circles at the lent that, although I'm Bill Ims passed its second, reading, none ol those in Auckland particularly interested in its provisions possesses a copy. t'nwelcome as arc* the Minister s tema.iks, they have served as an application ...it is hone d a timely cue —nl how la' regards thrii't— encouraging in. M itutions which have aroused the cupidity of .•'note seeking avenue-, of

financial accommodation for the. State. Essentially a bank lor working people, individual deposits are restrict, eel to £2OO. but interest is paid at the rate of IJ per cent, compared with 4 per cent on amounts up to £SCO in the Post Office Savings Bank. Preference as borrowers is given to depositors on easy repayments.

Within the past twenty years the bank lias donated £104.350 to deserving causes in the city. That the suggestion of the Minister of Finance, “the devotion of profits to national objects." is aimed chiefly at tho Auckland Savings Bank is patent. Of £0.364,383 standing to the credit of depositors in five private- savings banks in the Dominion on March 31. 1026. no less than £1,453,201 is with the Auckland institution.

”1 am confident the people of Auckland will take strong exception to any proposal that pressure should be brought iu bear to devote a large share oi the bank’s surplus to national ti®a.ges.” said a trustee of the Auckland Savings Bank on Saturday.

It was a delusion t" think that the hank simply had .to give money away. The past rate of donations must, and would, be restricted.. It was desirable for one tiling to increase the reserves with the object of giving depositors still better terms. it was apparent that the main object of the Savings Bank Amendment Bill, the provision that estates not exceeding £2Oll should bo payable upon death without the necessity for securing probate. was originated by the Auckland Savings Bank.