PRIVATE SAVINGS BANKS

Hokitika Guardian, 16 August 1927, Page 4

PRIVATE SAVINGS BANKS

(Mercantile Gazette.) It was suggested b.v the Minister of Finance (Hon. AY. Downic Stewart) during the discussion on the Savings Dank Amendment Bill that the profits of private savings banks should be devoted to national objects. It is interesting to note that resentment is shown to this, and it is as well’. With the known socialistic tendencies of the Government, it is rather surprising that legislation has not been foreshadowed having for its object compelling the private savings banks to devote their profits to certain objects prescribed by Order-in-Council. The protest to the Minister’s suggestion comes from Auckland, and the Auckland Savings Bank is certainly a model of such institutions. It is really a savings bank for the encouragement of thrift, and in that respect differs entirely from the Post Office Savings Hank. In the Auckland Savings Bank individual deposits are restricted to €‘2oo, as compared with £SOOO in the Post Office Savings Bank, and the rate of interest is 4jJ per cent, against the Post Office rate of 4 per cent, to £SOO. The Auckland institution is working on right lines in restricting individual deposits to £2OO. The man or woman who can save, and possesses more than that amount should have forced upon him or her the responsibility of finding investment for the money and not expect to he nursed bv an institution. The Post Office Savings Bank is less concerned with thrift and more interested in attracting the largest volume of individual deposits, because such deposits are available for loans to the Government. We want more savings banks like the Auckland Savings BanK, and the elimination of the Post Office Savings Banks would he rather to the advantage of the Dominion than against it. The Targe deposits of individuals should not be nesting in the Post Office Savings Bank, but should be used in developing tlio trade and industries of Now Zealand.