The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JULY 20, 1927. FRENZIED FINANCE.

Hokitika Guardian, 25 July 1927, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JULY 20, 1927. FRENZIED FINANCE.

Consiokhaiii.K alarm lias been created !>v a late statement by the Minister of Finance with regard to private savings banks. In particular, Auckland is up ill arms, and the newspapers are not above dubbing -Mr Downie Stewart a frenzied financier in his efforts to carry on the financial business of the Dominion. He suggested very plainly in the House that the profits of private savings banks should be taken for national purposes, a declaration which promptly set Auckland aflame. The Auckland .Savings Bank, the oldest and richest in the Dominion, has over five millions invested, which is more than the total of the sums to the credit of Auckland depositors. The disposition to regard the Ministerial utterance as a prelude to raiding the funds of the Savings Banks, is probably founded on the fact that already the same Government has declined (because of inability) to make its usual grant fixed by statute to the Highways Board but his directed that authority to borrow from its own reserves for its financial requirements to the amount of the statutory government contribution. With th? fact in mind, and the general knowledge as to the stringency on public funds, it is perhaps not surprising that Auckland regards the Minister’s utterances as a prelude to a raid on funds conserved for other purposes, as evidence of a round of frenzied finance to keep the public administration going. It is a fact, however, that the private Savings Banks are serving a great public utility and are doing much for the common good. Our readers will be familiar with the operations of the local Savings Bank to which reference has been made in these

columns from time to time. Its measure of local usefulness has been shown by its advance for local loans. Established here in 1805 from very small beginnings it has done much to assist the thrifty in building tip homes and businesses for themselves. The capital available fur the jmrpo.su has been n very useful addition for ordinary lending purposes, and were the Govern-

ment to force it to cease operations a very useful local source would he dried up. There is also the I net that the Savings Banks have assisted the Government very greatly by lending its surplus funds on various securities. During the war period, for instance, much motley was so invested by the Battles to assist the euintry to carry oil. and of iri'ent national benefit that ready assistance must have been. Certainly the Banks are in some degree in opposition to the Post Office Savings Bank, but the fact that they have

oxi'-V'd for so many years, and in each instance grov. more iinJsort ant (and therforc more serviceablet year after year, serves to show they him* a public usefulness which is appreciated and patronised in. a practical manner. It is clear already from the remarks being made by the public press that any attempt to raid the funds oi these h dies purely for national purposes, will bo resettled very strongly. The fact that the Banks are in healthy rivalry with the Government Bank is in itself evidence of their utility and value. They are serving a great purpose in helping to augment the thrift of Lite people. A very large sum stands to tin l credit of the depositors, and there is clear evidence that the money is being carefully guarded and well handled. Year by year the Banks 1 mill their local resources make a protit, ami it is well that the control of these appreciating the sums should be in the keeping of 11 to Banks themselves, and not appropriated by any legislation to any “national” purpose. Whatever benefit is derived by local management should be retained within the district for the benefit of the place whence the capita! was derived to create the profit. There are hut live of these Savings Batiks in New Zealand- Auckland, Dunedin. Invercargill. New Dlymouth and Hokitika—dim! those centres are certainly entitled to the full fruits of the local thrift, and to all profit, derived front handling the savings effectively.