NO CHEQUES

Hokitika Guardian, 15 June 1929, Page 6

NO CHEQUES

' U.O. SAVINGS BANK. MINISTER REFUSES AUCKLAND REQUEST. AUCKLAND, June 13. The request that provision h,e made for Lost Office Savings Bank accounts to be operated upon by cheque lias ueen declined by the Hon ATr Donald, Postmaster-General. The proposal was recently made to Air Donild by a deputation from the Auckland Provincial District Conference of Friendly Societies.

Explaining the serious objections in the way of acceding to the request, Air Donald says: "The primary object of the Post Office Savings Bank is not to provide facilities for the easy withdrawal of moneys, but to encourage thrift. To provide for withdrawals by cheque would involve a complete alteration of the present system, the fundaiiienta. conditions of whieli is that the deposit book must be presented for making therein at the time of payment of i’y lie: s cry entry of withdrawal. If in ana: cment. were made under whieli cheques toukl lie drawn on the Po-t dike Savings Bank the character of ihe ji as would be immediately ib. n mi! and the bank would be brought into competition with the commercial banks. Aloreover. the expense of. management would be largely increased. A system of withdrawal by cheque would not bo confined to any one section of depositors, and it is osliiliated that the expense of applying such a system generally would be so great that it could be arranged only by making an annual charge, as is due by the 'commercial banks, or by reducing the rate of interest paid to depositors.

"In connexion with the reference at the interview to tne system of operating on Past Office Savings Bank accounts by means of cheques stated to be in operation on the West Coast of tlie. South Island, it is understood that the private Savings Bank In Hokitika permits its depositors to make withdrawals hy means of cheques, and it is this bank, tio doubt, the member of the deputation bad in mind.”