N.S.W. SAVING BANK

Hokitika Guardian, 29 April 1931, Page 2

N.S.W. SAVING BANK

NE W AREANG EAI ENTS. (Australian rress Association.) SYDNEY, April 28. • Following on the suspension of payment by the Government Savings Bank of New South Wales, the PremierTreasurer, •Hop. Air Lang, in the Assembly to-day, introduced a Bill entitled the Government Savings Bank Amendment Bill authorising the transfer of Government Savings Bank business to the Commonwealth Bank in accordance with the terms laid down hv the hitter, as cabled on April 23. Every part of the Assembly was crowded in expectation of a bitter attack unon Air Lang. Among important provision of ' tire Bill the Commonwealth Bank is authorised to make payments to the depositors in the N. JAY. Government Savings Bank “only in such cases, and upon such terms, as tho Commonwealth Bank may stipulate,” while there is also a moratorium clause. This clause suspends the rights of depositors for a maximum period from April 23rd to December 31st, or for such further period as may be proclaimed by the Governor. No depositor and no customer of the N.S.W. Government Savings Bank may sue either that Bank or the Crown for non-payment of any deposit within the period prescrib’d by tiic moratorium, or may bring action in respect of dishonour by the Bank of any cheque or draft. The Government cf New South Wal.s agrees to guarantee tho Commonwealth Bank against all loss arising out of the advances made on behalf of the Savings Bank, and the Treasurer and the Savings Bank Commissioner* are empowered to arrange for the transfer of tin* whole, or part, of the Savings Bank to the Commonwealth Bank.

Speaking on the second rending of the Bill, the Premier, AH' Lang, declared that Certain of the Opposition members had destroy (1 the Government Sin mgs Bank in the hope that this would bring about the Government’s downfall. He went on to relate the incidents which led to the run on the Bank's funds and its suspension of payment. “There are men in this House,” the Premier shouted, “who .deliberately have brought about tho downfall of this grand institution. Air Foster (Nationalist): “Aon have brought it down without doubt.” Opposition cheers. Air Lang: “All that, T ask now is that members will curb their poisonous tongues so that the amalgamation negotiations may continue to a successful issue. Then, at an early date, they may have the chance of making whatever defence they can for their shameful traitorous conduct.”

Air Stevens, Deputy Leader of the Opposition, spoke in the absence of Air T. Bavin Lender, who was attending litis mother’s funeral. Ah* Stevens said that the excess of withdrawals over deposits in the N.S.W. Government Savings Bank between July, 1939, to the date when the Bank closed approximated sixteen millions, and that when payment was suspended the Bank had practically no cash in band. On the other band, the Government of tliis State held more than seven millions of the Bank’s deposit moneys. The Government had been unable to raise one penny to meet its obligations to the Bank because of the widespread discredit which it lmd brought upon the State by its dishonest repudiation policy. He declared: “The failure of this bank is definitely and solely traceable to tile Lang Government. T'ne most serious run on the Bank’s funds occurred after Air Lang’s default to the British bond holders on March 27th, and after his statement to the Easter Labour Conference concerning tlm Socialisation of industry and finance.” BILL PASSES ALL STAGES. ■SYDNEY, April 28. The S a vings Bank Bill was read the second time. AVhile the Bill was in the Committee stages. Air Stevens asked the Premier whether any arrangement was being made to absorb the Government Savings Bank employees. Mr I,nng replied that this matter would be considered when amalgamation was being discussed. Air Stevens also asked whether the depositors would receive an assurance that they would recigive the whole of their money from the Government Savings Bank. Air Lang replied that the whole of the deposits would be paid in full, bec:iits 0 th’ Bank was backed by the State of New South AVales. The Bill passed all stages without amendment.