SAVINGS BANKS’ PROFIT

Hokitika Guardian, 23 July 1927, Page 1

SAVINGS BANKS’ PROFIT

(Auckland Herald.)

A suggestion made hy the Minister of Einance, in the course of discussion on the second reading of the Savings Bank Vmeiulmcnt Bill, is to be viewed with serious misgiving. It refers to tlie di-posal of the profits of these hanks. Air Down ie Stewart expressed his opinion that the profits should he devoted to national objects, and not as at present to local purposes. The principle lie enunciated is open to grave objection. It may be noted that, by existing legislation, savings hanks are authorised to donate half of their profits to certain institutions, mainly charitable and educational, and that it is now proposed to extend the .scope of those bonefaetdons to include any charitable organisation approved hv the Governor-General in Council. This extension is unexceptionable, anil will doubtless lie welcomed by the trustees of the various savings banks. who would retain under it their right of choice as to the objects of their gifts. These objects have hitherto been chosen subject to Government approval, and the amending provision merely enlarges th<‘ range of their initial choice. The effect ol Air Stewart’s suggestion, however, if given the force of law. would be to take qway their choice, by proscribing local objects and limiting the benefiting institution-; and organisations to those only that have a nation-wide character, ft is opinion has obvious reference to the Auckland Savings Bank. The other four are relatively small and would not he materially affected. The trustees of this hank, as is well known, have shown a thoughtful regard for local objects. From time to time they have made considerable contributions to these objects, sirietly within the -cope of the legislative provision, to the general benefit of citizens here, ince the amounts so donated have been the earnings of the investments of those citizens, this local benefit lias been manifestly equitable. To insist Ibai Ibis benefit, made possible by t nose local in rest men is of Auckland people, should he compulsorily nationalised. would he gravely unjust. It is of a niece with the ton-frequent occurrence. as soon as there Is any purpose. of a demand elsewhere that they should he placed at. the disposal of the whole Dominion. Auckland members of Parliament should clearly tell the Government that any attempt to vivo i Heel to the Al mister's opinion will bo keenly re-enled bv citizens bore.