POST AND TELEGRAPH.

Hauraki Plains Gazette, Volume XXXIX, Issue 5316, 22 August 1928, Page 4

POST AND TELEGRAPH.

INCREASE IN YEAR’S REVENUE.

SAVINGS BANK ACCOUNT.

In .connection with the receipts and expenditure of the Post and Telegraph Department the Minister, of Finance (Hon. W. Downie Stewart) states in his financial istatmlenjt “This department paid into the Consolidated Fund as revenue for the year the amount of £3,323,260, which was £96,702 moire tha,n fon the previqus year. Working expenses under the vote, amounted to £2,297,058, maintenan.ee of po;st office buildings cost £19,774. and, after allowing for interest and depreciation changes, the depaii’itment was able to close thei year with a net profit of approximately £20,000.

“In ojiider to give tl>e department continuity of finance, and establish it upon a complete commercial basis, legislation was passed last session, to separate the post office a .counts, from the Consolidated Fujid. Henceforth these, acounts will be shown in a separate a.ccoiunt, which will enable honourable, members and the public generally to obtain a better idea of the operations of this large depaj’tinPnt.' There wUI be brought into; the Consolidated, Fund as revenue full interest QU' tine, amount of loan capital sunk hi, the assets of the department.

“The Government’s policy in regard to the Post Office Savings-bank was outlined by me in the House laist session. In pursuance of that pojHcy steps have, been taken to reduce the maximum amount of deposits on which interest is payable ftom £5OOO to £2OOO, while making an exception in the case of deposits in excess of £2OOO at the time for so tong ns they remain op deposit. The change operated as fro>m April 1 last. “The function uf a savings-bank is to provide facilitate for. the safe investment of the small savings of the people. The manner in which the funds of a savings-bank are. invested is quite unsuited for (handling commercial deposits and floating balances. Aliy considerable amount of floating, balances practically at call is, in fact, a danger to the Stability of a sa.vingsrba.nk. On this account the maximum amount of individual dieposits in savings,-banks in all countries is severely restricted. In Australia, I understand, the ma.ximum ton the Commonwealth Savings-bank is £l3OO, and tor the other, banks less than that. These restrictions not only practically exclude commercial deposits, but provide an additional safeguard in, that a Urge number of depositors must be simultaneously seized with the desire to withdraw their money before there is any appreciable chance of straining the, liquid resources of the bank concerned.

“At the same timet, in order to provide facilities for the investment off savings for fixed peiModsg and any amaiint, arrangements were mvile to issue: post office certificates on attractive terms. These provide for investment of any amount fo ( n periods of onle, two), apd five years at rates of interest varying frqm approximately 4'% per cent, to 5% per cent. These certificates, I am pleased to ato pmvihg popular, apd in the. six months to the end of the last financial year investments amounted to, £541,790.

“National saving certificates on similar lines are issued in Great Britain where they have proved a very popular instrument of thrift, the holdings of the people amounting to the sum of £360,000,000.”