BANK OVERDRAFTS

Hokitika Guardian, 19 December 1929, Page 7

BANK OVERDRAFTS

A REMINDER TO CLIENTS. CANBERRA, November 28. In view of the interest which lias been aroused by the Government’s intentions to remodel the Commonwealth Bank, with a view of increasing its scope and functions, Labour members attached particular importance to a question asked in the House of Representatives by Air Cunningham (New South Wales), and to the answer given by the Treasurer. Air Cunningham asked Air Theodore if his intention had been drawn to a circular letter issued by one of the private banks, in which clients having overdrafts were reminded that such overdrafts were liable to payment on demand, and that such clients had better make arrangements for private finance. Air Cunningham added that, in view of the fact that some of these clients had securities deposited with the bank amounting to approximately three times the amount of their overdraft, would the Treasurer institute inquiries to ascertain the reason for such action by the bank, and would he try to make arrangements for the Commonwealth Bank to accommodate the people so notified who might desire to avail the mse Iveys of the facilities of the national bank?

The Treasurer replied that he had not heard of the circular referred to, but the Government was now giving attention to the suggestion made in the second part of the question. The subject, though important, was delicate. It was hoped tliot the Government would he able to take action which would result in easier credit conditions for persons who desired to carry on their business in the ordinary way.