THE BANKING QUESTION.

Wairarapa Age, Volume XXXII, Issue 3190, 15 May 1909, Page 4

THE BANKING QUESTION.

Some remarks on the banking c,ues tion were made by Mr H. G. EH, M.P. for Christthurcb, at Auckland on Tuesday last. Mr Ell prefaced his remarks by stating that he was not in favour of an inconvertible paper currency, or, as it was generally termed, "the bale of paper and printing press" policy. There were, however, great advantages in a State bank run on judicious lines, and this was proved by the great success that had attended the operations of the Bank of Mew Zealand since 19C5, during which time it s hadpracticail y baen a State bank. He read a statemen 1 ; which had been prepared fat his request by Mr G. W. Halme, accountant, of Christchurch, showing the net profit whicn, under ordinary circumstances, would have b

available for the holders of ordinary shares for the period of 19U1-08, such percentages having been determined atter making-provision for the maximum dividend of 10 per cent, for the preference shares held by the State, although such maximum dividend had not been paid. The result arrived at showed that the net profits of the bank had steadily increased ffrom £.164,360 in 1901 to £244,880 in 1907, and £259,922 in 1908, Whilst the percentages of profit to paid up capital had'risen from 38.96 in 1901 to 48.97 in 1907, and 51.98 in 1908. He urged that the State's interest in the bank should be increased, and the limit of the dividends payable to the shareholders, now fixed at 50 per cent., should be fixed at, say, 10 per cent., and that the bank should offer greater and cheaper facilities to the public than those now afforded.