ABOUT BANK CHARGES.

Pukekohe & Waiuku Times, Volume 3, Issue 163, 20 January 1914, Page 4

ABOUT BANK CHARGES.

When Money is Dear.

WELLINGTON, July 14. "I tnir.k there \s no justification whatever for what is said about banking: cha'ges," caid Mr Harold Beauchamp, chairman of directors of the Bank of New Zealand, when invited to discusj the question of alleged excessive rates charged lor overdrafts and discounts, "in mary casts banks are advancinrg money by way of overdrafts at slightly lower rates than are übtamatle by ordina y mortgages. If you lock carefully at the banking returns just published, you will find that the banks in this Domi ion have betn doing more than their duty towards the trading public. Further, if you consider the rates charged by tanks here compared with those ruling throughout Europe, you will find that during the perioi of strinzcncy through which we have been pas-ing during the pa?t twtlve months people in this country were actually receiving rtore liberal treatment than those in the Northern Hemisphere.

"I observe that one or two newspaper correspondents suggest that the Government shouli ir.deavour to influence th 3 Bank of New Zealand to charge lower iates il an its com petitors. 1 venture to think the Government will not go t) that lenath, as tie Ministry must recognise that the price of money, as is the esse with every other article in which people have to deal, is regulated by the inexorable law of supply and demand.

"To-day 6 per cent is quite a common rate for overdrafts, provided the borrowers can offer first class Eecurity. This is no higher than the rate charged by first cla s mortgage companies, who aim st invariably insist on a margin cf from 40 to 45 pet cent on the value of their securit : e3. 1 have noticed some suggestions that the present rates ruling for money ,are in some way attributable to the action cf the present Government. That, of course, is ridiculou®, when ore knows, as I have already pointed out, that the rates ruling il this Dominion compare most favourably with those now obtaining in Euroje ar.d elsewhere. I presume it is cot suggested that the Government of New Zealard can dominate the money markets of the world, which is the inference one might draw from some of the remarks 1 have seeu in the New Zealand papers.

"In answer to the statement that rates in Australia are lower than those ruling in New Zealand, 1 would mention that tne large lending institution in Nsw Zealand whose heai office is in Australia has been instructed to transfer to Australia any of its funds f r whicn it canr.ot find immediate employment at 6 per cent, on the ground that there is no difficulty in getting 6 per cent for gilt-edged securities in Australia."