SAVINGS BANK COLLAPSE

Hokitika Guardian, 28 July 1931, Page 6

SAVINGS BANK COLLAPSE

A SERIOUS POSITION. (Australian Press Association.) this day* at 9.25 a.in) ‘ SYDNEY, July 28. (JJhg l ajd ! c, r collapse of the bank merger negotiations caused a painful sensation, particularly among depositors of the Government Savings Bank, ho represent probably forty p_r cent, of the population of New South Wales, and whose balances aggregate fifty-four millions. Their position is regarded as infinitely worse now compared with the date the Savings Bank suspended payment some months ago, as under the terms of the proposed merger, the Commonwealth Bank had agreed to ration depositors according to their circumstances, and permit small acounts to be closed. That widespread hardship will ensue is generally admitted in financial circles, while whatever hope the Savings Bank two thousand employees entertained of receiving posts in Commonwealth Bmiks have now practically gone. Mr Lang would make no statement after Cabinet met this evening, beyond confirming the announcement that he had sent a letter to Air Riddle. It is understood this makes a request for reconsideration of the terms of the proposed merger which Cabinet regards as far too drastic and for the adoption of which Cabinet were unprepared to accept the responsibility.