POST OFFICE DEPOSITS

Sun (Auckland), Volume IV, Issue 964, 6 May 1930, Page 7

POST OFFICE DEPOSITS

REDUCTION IN MAXIMUM ANSWER TO MR. HOLLAND The charge by Mr. H. E. Holland that the Reform Party had driven millions of money into the hands of private hanks by reducing the amount of maximum deposits was refuted by Mr. W. P. Endcan. Reform candidate for Parnell, addressing a large audience wit the Tudor Theatre last evening. Previously the Post Office Savings Bank accepted deposits up to £ 5.000. and paid interest thereon. The money was. of course, at call. It was used largely by solicitors and financial agents, to whom it was a godsend to bo t ble to put aside money for a few weeks onlv. at call, and receive 4 per cent, interest on it. The Post Office s barrassed by having this use made of the hank, a use never intended It meant that these large deposits could not he reinvested by the post office; and vet it had to pay interest on them. The point was reached where the post office had either to cut out these large temporary deposits, or else to reduce the rate of interest for small depositors. said the speaker. The Reform Government considered that the purpose of the Post Office Savings Bank was to provide facilities tor the small depositor, and that they should not be sacrificed in the interests ei the lawyers and others who \v« ve making a temporary convenience of the institution.