N.S.W. SAVING BANK

Hokitika Guardian, 22 April 1931, Page 6

N.S.W. SAVING BANK

TO AMALGAMATE WITH FEDERAL BANK. (Australian Press Association.J SYDNEY, April 21. The position of the Government Savings Bunk of New South Wales, upon which there has been a tremendously heavy drain in recent months, was considered before a special meeting of the State Cabinet to-dav, when the Premier Air Lang, informed colleagues that the Bank Commissioners contemplated its amalgamation with (the Commonwealth Bank, the terms of which amalgamation wore under consideration. The Cabinet decided to approve of the amalgamation. It will be recalled that Mr Fenton. ivi.id.lt., speaking at Ballarat recently, sounded a warning in regard to the stability of a certain Bank of New South Wales, as a result of which the “Labour Daily” severely attacked him. It declared that the New South Wales Government Savings Bank was never stronger in its history. The “Labour Daily” only to-day publishes a speech by Air Ely, one oi Air Lang’s Ministers, who said that Air Fenton had committed an unpardonable crime on the workers’ bank, which held upwards of seventy-live millions of toilers’ money; the paper added that if there were a financial crash to-morrow, the one bank that would come out unscathed was the State Savings Bank.

PROPOSAL FOR AMALGAMATION. (Received this day at 8 u.m.) SYDNEY, April 22. It is regarded certain that the pubic cation in the morning of the savings hanks difficulties would cause a sensation throughout Australia. Air H. D. Hall (President of the Government Savings Bank) stated to-night that the Premier had placed a proposal for amalgamation before the Commonwealth Bank at the request ol the Commissioners. The factors responsible were the adverse economic conditions and damaging statements made at last State elections which had caused a run on the banks funds and the subsequent evening press statement relating to delay in the payment of interest on the banks holding of State Government securities. It is also pointed out that receipt legislation by the State Government aiming at a reduction of interest had produced a very unfavourable effect aad further heavy withdrawals continued for many weeks. Nevertheless the Commissioners declare tho hank is quite solvent and the proposal for amalgamation at this stage is the only prudent course to adopt in till the surrounding circumstances. The last balance sheet of the Government Saving Bank on June 30th. 1930, showed depositors balances £70,633,343, cash reserves over sixteen millions, anl investments fifty-four millions, whereof twenty-nine millions were in New South Wales Government, stocks. SYDNEY, April 22. On Behalf of the Commonwealth Bank Board the Chairman, Sir R. Gibson, stated the Board received a communication from Afr Lang requesting the Board to consider the proposition to absorb the Government Savings Bank of New South Wales in the Commonwealth Savings Bank of Australia. The Board advised the Premier that it was quite prepared to investigate such a proposal and if a satisfactory basis can he arrived on which transfer can be affected. 'l’lie Board will submit its views to the Federal Treasurer Afr E. G. Theodore, whose approval will he required. Air Latham on the adjournment o 1 tlie House of Representatives asked the Prime .Minister if he was in a position to or confirm the rumour, which had now gou 0 through Australia that the New South Wales Savings Bank was unable to meet the demands of depositors. If there were no truth in the rumour all would he relieved and if there was any truth in it, he hoped the Prime Minister would let it he known that the Commonwealth Savings Bank was entirely unaffected by the position of the Savings Bank of New South Wales and depositors in the Commonwealth Savings Bank had no reason to feel any apprehension regarding their deposits. He suggested that Air Scullin should State that other savings banks wei-e unaffected, also each savings bank was guaranteed by the State and therefore the responsibility of the New South Wales Savings Bank deposits was on New South Wales Government.

Mr Page asked the Federal Government to consider taking over the NewSouth Wales Savings Bank. If the Government would examine the position, it would have th t > co-operation of the Country Party.

Air Scullin replying said they were keeping in touch but had no information of any bank being closed. All bp said was “Do not let- them start a panic in this Parliament. I regiet the whole debate.”

MR SCULLIN’S REASSURANCE. (Received 10.20 a.m.) CANBERRA, April 22. Mr Scullin, speaking on the banking question, said all resources ol the Commonwealth would he used to protect depositors. He urged members to keep their heads, and so tar as the Government could Hnllilence parliament, it would induce it to extend all its powers and trust the Commonwealtli Bank to protect every deposit or in every saving bank in Australia.