A STATE BANK.

Taranaki Daily News, 6 May 1922, Page 5

A STATE BANK.

MR- MASSEX-S VIEWS. PRESENT SYSTEM BETTER. By Telegraph.—Press Association. Wellington, Last Night. When Mr. Massey was in Gisborne, 1i e was approached by Mr. Fmncis Stafford on the subject of a State Bank and, replying to the interviewer, promised on his retun* to Wellington to send a written reply. In his reply, Mr. liiaasey analyses the assets and main figures in the balance sheet of the Commonwealth Bank, and says he is not disposed to view with favour any State banking business under exclusive Government management.

“The actual profits made by the Commonwealth Bank during the ten years, for which I have the complete figures, has amounted to l3s lOd, That sum is equally divided between the reserve and redemption funds of the bank, and actually represents its sole capital. The greater part of the bank’s general business consists of accounts of the Federal and State Governments, with their many branches of activity, and of those of quite a large number of local bodies. As a matter of fact, its ordinary advances (apart from Government accounts) merely amounted last year to £lB/557,022. That sum includes loans to local governing bodies. It is evident from this that the trading public is not receiving any great amount oi consideration from the Commonwealth Bank, and, conatrasted with similar advances made by the Bank of New Zealand during its last financial year, amounting to such result can only be regarded as distinctly disappointing by the advocates of State banking in this country. I am satisfied that we can show better results under our existing method of doing business than we should be able to do with a State Bank in existence. The New Zealand Government received from the Bank of New Zealand last year a total of £588,500 in the sliape of taxation and its share of bank profits. The Commonwealth Bank contributes nothing to the taxation revenue of the Commonwealth or State Governments, and I believe it is even exempt from local rates. So far, the Federal Government of Australia has not received a penny in the shape of revenue from this bank.”