POST OFFICE BANK.

Auckland Star, Volume XLIII, Issue 207, 29 August 1912, Page 8

POST OFFICE BANK.

THE CHEQUE SYSTEM WOT PRACTICABLE. MINISTER PKOfMOSES TO REVIEW POSITION. (By Telegraph.Parliamentary Reporter.) WELLESIGTON, Wednesday. The operations of small clubs and associations on their non-interest bearing accounts in the Post Office Savings Bank by way of cheques was the basis of a question put by the member for Christchurch East to the PostmasterGeneral the other day. "This question," replies the Hon. Mr. Rhodes, '"has been repeatedly considered. The Post Office Savings Bank was established with the primary object of encouraging thrift, and not for providing means 'for easy withdrawals of moneys. To provide for withdrawals by cheque ■would mean the complete alteration of the present system, of which the most important point is that the deposit book must be presented for the necessary entry therein of a, withdrawal at the time of payment. If any arrangement were made by which cheques could be drawn on tbe Post Office Savings B-nk it would immediately change the character of the bank, and bring it into competition with commercial banks, to say nothing of the fact- that the expenses would be largely increased by the necessity for substituting elaborate checks in place of the comparatively simple : one of entry in depositors' pass-book. A system of withdrawal by cheque could not be confined to any one section of depositors, and it is estimated that the expense of the suggested system would be so great that it could only be met by -m-lring _ n annual charge, as is done by the commercial bamksi or by reducing the rate of interest to depositors." Discussing the subject in the House Mr. Forbes urged that the Post Office Savings Bank should be simplified and made more popular. If this, were done the country would get the benefit ot a great deal of money that was at present on deposit in various commercial banks. He did not think the change "would affect the people's thrift. Mr. Davey Tegretted that the 'Post-master-General had not entered more fully into the proposal. He thought they should promulgate some scheme whereby depositors could withdraw by cheque. Why, he asked, should the Savings Bank not compete against other banks? He asked the Postn__sterGeneral to go into tlie matter dosely, and see if something could not be done, 'because people living a distance away from the post office had in some instances to wait three months before they could obtain their -withdrawals. ■ The Postmaster-General, in expressing his willingness to review the position with the idea of seeing what could be dbne in the direction desired, said that if the system of withdrawal by cheque were introduced it would re-act on the interest paid to depositors. Mr. Forbes: But some of the accounts -would be -willing to pay a small fee. Mr Rhodes pointed out that the commercial banks were only paying interest on fixed deposits, whereas the Post Office Bank paid interest from time to time until withdrawal on all accounts. "But if it is possible I am quite prepared to make the concession,'' said the i&finister.