DENIAL GIVEN

Hokitika Guardian, 15 July 1932, Page 6

DENIAL GIVEN

TO STATEMENT AGAINST BANKS “PROFITING BY EARTHQUAKE.”

NAPIER, July 14

The; s/jatement made at a recellt meeting of the Napier Business Property ' Owners’ Association “that the banks did well out of the notes that" were burned’’ at the time of the earth- : qf|ake, Is contradicted in banking circles in Napier. A banker advanced facts' to refut e such a statement, which, Re said,/voiced an opinion which was he doubt widely held.

The banker stated that the ‘annual bankiiqitestax was £4,10s per cent.', the income' tax on the Habikty “notes incirculation”, was 7s 5d per cent., the - income' tax' ‘on' the assets “gold and Government securities” required by as a!backing for the note issue was 7s 5d per cent., and the cost of note .forms ■and administration charges were estimated to b e at least '£l per cent; making a total of £6 4s 10d per cent. He said that the ..banks in New Zealand paid income (tax .on average ‘ ' a'sets and liabilities

“Irt the absence of tangible evidence to the bank that notes have been destroyed or burned they are -still on the bank’s records’ as being in circulation, and are ithu-s subject to taxation,” the banker st;l:ed. “it will therefore be 'readily understood that the banks do not make a profit on- these notes as popularly supposed ” \ ■.