PROJECTED NEW BANKS

Hokitika Guardian, 19 August 1929, Page 7

PROJECTED NEW BANKS

BANK DIRECTOR'S VIEWS. The proposals that have been made towards the ■ .establishment of new banks in the Dominion were referred to at the annual meeting of the National Bank of New Zealand in London on July 10th. The chairman of directors, the Hon. W. Pember Reeves, said:— “ You will remember that last year an Act was passed granting a charter to a now bank proposed, but not yet started,, in. New Zealand. Since then the newspapers have informed us that two more enterprises are on foot in Australia to set up banks,. both of which are to do business, in New Zealand. So far as I can gather, these three concents are still engaged in preliminary.- operations, and I may, therefore,'be excused front speculating upon-what effect their competition, if it,'materialises, would have upon busi-’ .ness. All I say is that the six banks now working in New Zealand have SGO branches and agencies open to customers for business there. There is, therefore, one banking office to about 2600 of the population. Tlio banks have lent the public £47,000,000 —a- tidy sum for a population of less than 1,500,000. If more were fairly required they could lend it.

BANKS AND THE PUBLIC. “ I would, however, point out that so far from being niggardly towards the public, they lend a much higher proportion of their deposits than English bankers would dream of doing. Nevertheless, if I may judge from what I read and hear, they are criticised for not lending enough. The truth is that there is a confusion between banking and mortgage loans. As I have already stated, there is a loud cry for cheap mortgage money, but it is not our (business to supply it, and it is most unjust to blame us for not doing so. (Hear, hear.) Furthermore, to suggest that because banks do. not lend up to. the last penny of their deposits they are keeping millions of money idle which might go to develop the country is not only wrong but really dangerous talk. Again, so far as it from the truth that money is especially dear in New Zealand just now that I may point out that, during the last 12 months, quite an appreciable amount has been sent from New Zealand to Australia because higher rates could be obtained for it in that continent.

TO HELP. PRODUCERS. “With regard to the attacks which I regret to notice are made on the banks trading in the Dominion .from time to time, I have no’ authority to speak for the other hanks, but for our own company I can only say that it has been our settled policy to help primary producers in Now Zealand in every legitimate v r ay. We have a largo connection with them and very many solid and valued clients, but to suggest that your dividends mainly come i rom profits made by us out of our business with farmers and farmer’s companies is, I can assure you altogether incorrect.”