COLLECTING COUPONS.

Shannon News, 30 November 1926, Page 3

COLLECTING COUPONS.

BANK’S NEW CHARGE. LEADS TO POWER BOARD PROTEST. At last meeting of the Horowhenua Ppwer Board, the Treasurer reported as follows: — “Notice was recently received that the Banks had decided, henceforth to charge a fee of 4 per cent on the value of coupons collected by the Banks in Australia for their N'cw Zealand local body customers. Hitherto the Banks seem to have been satisfied with the exchange rate for their remuneration on these transactions. “As they are sure of the exchange in any case, they now take the advantage to charge a fee for the small service they render, to their customers, for which in the past there was no charge. “It would be interesting to know the reasons which make it necessary to charge a fee now, when it was not necessary to do no in past years. “In any case new charges, although .small are not satisfactory from the borrowers’ standpoint. Before raising loans, careful consideration is given to the cost of loan monies in the shape of interest, sinking fund - and exchange, but when an entirely new charge springs from the ground or dr®ps from the skies as the case may be, this is something which has not been provided for or taken into account and consequently is not very welcome.”. The chairman (Mr G. A. Mcnk) said this charge came as somewhat of a surprise. It appeared tc be small, but Avhy the necessity. No one else m this country, was making the same profit as the banks. He would like to hear of any argument in favour of the charge, but supposed they were in the banks’ hands. Mr T. G. Vincent; Are we? We a,re importing more stuff from Australia than we are selling to them. Why could we not buy some of those drafts? Mr Petherick considered -a protest should be made. These small charges were always being imposed. A few years ago it was a charge, for keeping a current account that was put oil. As a public body they should take some notice of the Banks’ action and he suggested invoking the aid of the Chambers of Commerce in a protest. At the chairman’s instance the matter was referred to the Power Boards’ Association with a’ request that a protest be made to the Banks.