HIGHER BANK RATE.

Shannon News, 13 May 1927, Page 2

HIGHER BANK RATE.

LOCAL BODY PROTESTS. PALMERSTON, This Day. Members of the. Manawatu County Council were unanimous in their protest yesterday when advice was received from the Bank of New -Zealand to the effect that from last Monday in terest at the. rate of 7 per cent, per annum would be charged on the Council’s overdrawn accounts. The letter went on to say that the Bank regretted that the hardening of the value of money had rendered it' necessary for all banks ,to make a corresppndiug in crease in advance rates. Replying to a question, the chairman (Cr. W. E. Barber) stated that all the banks were in a pool. •, ' • „ Cr. J. Fagan stated that advice haa been broadcasted in the press from, the Home Country to the effect that the Bank of England had reduced its charges to 4$ per cent. “They go .down and we go up —its robbery,” he added. “Pretty solid,-” .was the comment of the chairman. “I do not think w;e should take the increase lying down,-” stated Cr. Fa gan, who was of thje opinion that a public protest should be made. “Isn’t there‘one bank that is not in the combine?” asked Cr. J. Boyce. The clerk replied ; that he did not know if it was still outside the banking circle.

Cr. Fagan moved and Cr. W. Pearce seconded the following resolution, which was carried unanimously:

“That this Council views with alarm the increased rate of interest being .charged by banks for local bodies’ overdrafts and that a copy of this resolution be forwarded to the Minister of Finance'.” 1