RATE OF INTEREST

Hokitika Guardian, 3 May 1928, Page 2

RATE OF INTEREST

APPEAL TO ASSOCIATED BANKS. (By Telegraph—Pei Press Association A WELLINGTON. May 3. The billowing letter has been addressed by the President of Associated Chambers of Commerce of New Zealand Ah D. .1. McGowan) to the Chairman of the Associated Banks:— When the* Association last addressed you mi the subject of interest rates, tbe figures of March quarter-were not available. Having since been made public they afforded ample proof of the easier monetary condition of the Dominion. If figures were available relative to deposits and advances of banks to-day. would they not disclose a position even better than that shown by tlie figures of March quarter. The average trade figures for the year ended March thirty-first nlso are evidence that for the time lieing. at least, a check has been given to our trading. In tbe circumstances my executive is of opinion that the Associated Banks should reduce the rates charged for advances on overdraft at least by the extent of half per cent, made in May lasf. If it is not expedient not to make a reduction to apply immediately. at least an announcement could be made to take effect say on June Ist. The rates charged by the Associated Banks arc not only accepted as an index of the conditions within the Dominion and govern the rates ol financial operations such as loans on mortgage but largely “set the pace” of development in both primary and secondary industries. No evidence of returned confidence would ‘he moresignificant than a decision which we again ask the Associated Banks to make without delay.