POST OFFICE SAVINGS BANK.

Nelson Evening Mail, Volume X, Issue 180, 21 July 1875, Page 4

POST OFFICE SAVINGS BANK.

An Auckland telegrntn to the N. Z. Times says s — t{ Mr Reea' statements re Postoffice Savings Banks having been designated false by (he Cross, Mr Rees replies in a letter to the Herald to-day. He says with reference to the deposits of the Savings Bank having gone into the whirlpool, and people not b'eiug able to draw money: — 'I repeat the statement in its fullest and most complete sense, and will now prove its truth. In Mr Voxel's Financial Statement for 1874-75 it is set out that out of £776,106 trust funds, £684,389 are invested in Government securities. These securities Mr Yogel himself, I believe, asserted in tne House were part of the moneys borrowed under authority, on the Immigration and Public Works accounts, and which had heen used for Public Works and Immigration. This money then is actually spent thus. It ia therefore* true that ' it has gone into a whirlpool.' It is also just as true that 'if people wish to draw their savings they cannot do so.' If, then, people who have put their savings into Government custody went for their money, from whence could they get it? Government has not the'pash to pay. -Government might- indeed borrow money — that is, if it could — or, as these funds are, it is said, secured as a first charge upon the Consolidated Revenue, tne Government might levy on additional tax to the amount of £700,000 (or the nest year. I should like to see what effect this would have. Even then, depositors would have to wait till the tax was raised, but without one of these two plans were pursued the people could not get their money. I don't say the people will not get their money, but what I say is that it is gone. I say more. I say that as the people who deposited their money in the Post office Savings Bank never intended to lend it to the Government for thirty years on Government securities, Parliament committed a fraud upon deposi tors in so appropriating these fundf which, had they been private directoi of a company or a private bank, woul have gone far to place them in Mour Eden- gaol/ " Upon this the Times remarks a follows:— "Mr Reea, of Auckland, i determined to maintain his political reputation. What that is exactly it would be difficult indeed to tell, and the best definition would probably be that it is the political reputation of Mr Rees. Rich as all countries are in public detractors, Mr Rees stands quite unique, and whatever pre-eminence he may gain thereby, will be cheerfully accorded to him. We do not hope to convince Mr Rees, or thosg who believe in him, that he is quite wrong, and we are not, therefore, inclined to point out that his assertions are in the mildest words mistatements. Though it is true, we believe, that if every holder of notea of any particular bank in the colony were to present themselves at the doo.rs of every branch office to-morrow morning, there might be a temporary difficulty in meeting engagements ; still, we take if, no ona doubts the solvency of any of these institutions. But we may say that the Government Savings Bank department is beyond this, and could, were such a thing possible, meet the demands of every depositor, if every depositor were to apply thia day. In fact, the law com >els it to be thus. Mr Roes's accusations against Parliament are made, we fear, with ; the desire of getting himself made a martyr of, and, if possible, adding to his notoriety. To gratify him would be in Btrict justice, but might not be wise. He has closely approached a breach of privilege , but that is scarcely worth noticing, and will not, we trust, be noticed*