Development of Savings Banks

Sun (Auckland), Volume 1, Issue 98, 16 July 1927, Page 10

Development of Savings Banks

RIVAL TO POST OFFICE SUGGESTIONS IN HOUSE (THE SL'X'S Parliamentary Reporter.) WELLINGTON, Friday. \ LTHOUGH private savings banks, of which there are five in New Zealand to-day, might have been started in a small way as a poor man’s institution, it was shown in the House of Representatives to-night that nearly’ £7,000,000 is now controlled by T them. Mr. A. Hamilton, member for Wallace, who mentioned this fact, advocated an extension of the banks’ operations with the stipulation that 80 per cent, of the deposits should be used for land mortgages. This he averred would provide a system of dealing with mortgages better than any’ in existence at the present time. Tie asked that before the Savings Bank Amendment Bill was allowed to go through a conference of the five private savings-banks’ trustees should be held, with a view to effecting much desired amendments. People did not realise the service these institutions gave to the community. Mr. J. A. Lee, Auckland East, said that the City' of Auckland had derived a great deal of profit from the operations of the Auckland Private Savings Bank, the museum and art galleries having received material benefit. The Minister of Finance said that in previous negotiations no mention had been made of the trustees’ remuneration, which had been fixed at £1 maximum in the days of the Seddon Ministry, the idea no doubt being that private savings banks were a poor man’s institution and business men were prepared to manage them for a small fee. The question which was raised was

that the competition of private savings banks with the Post Office was becoming more marked. It was true that no new banks had been allowed to start in recent years. There was no special point in inviting further competition. While much of the profits from private concerns had been devoted to public purposes, the more the Post Office Savings Bank was availed of the more money would be available for the development of pubic resources.