BANK CHARGES.

Auckland Star, Volume LXI, Issue 217, 13 September 1930, Page 9

BANK CHARGES.

THE NEW DEMANDS.

RESENTED BY MEMBERS.

PROTEST TO GOVERNMENT.

DEFINITE ACTION WANTED,

(By Telegraph.—Parliamentary Reporter.) WELLINGTON, Friday.

As a protest against the banks' decision to double the charge for keeping customers' accounts and to restrict the issue of 10/ notes, a deputation of members of the House interviewed the ActingPrime Minister, the Hon. E. A. Eansom, to-day. It was introduced by Mr. H. E. Holland, and included Messrs. A. Harris, H. G. Dickie, H. S. S. Kyle (Eeform members), F. Lye (United), F. Langstone, W. E. Parry, D. G. Sullivan (Labour), and others.

The deputation, said Mr. Holland, wished ■to ask the Government to take steps to secure the revocation of the banks' decision to charge £1 per annum for keeping accounts and to restrict the issue of 10/ notes. He believed if the Government approached the banks they would listen to reason, otherwise the deputation desired the Government to take definite action. "Fleecing their Customers." Mr. Harris described the banks' decision as a gesture of defiance against the Goveniment, and the deputation, comprising members of Parliament,- was' justified in appealing to the Government, because it should control the Bank of New Zealand. It appointed the greatest number of directors, and this bank was the'largest of the Associated Banks. It appeared to him from many angles that the banks had no soul whatever. They seemed to make every post a winning post to fleece their customers as far as they possibly could. They ran after them when times were good and tried to force them to take money, but when times were bad they made it difficult for them to carry'on. Mr. Ransom had a golden opportunity, and if he took action he would be. applauded from one end of the country to the other. Challenge to State. The banks had issued a challenge to the State, said Mr., Savage, and this could not be tolerated from any private institution. It was a threat, and had the film or petrol people done the same thing they would have been up in arms. But the banks seemed to be sheltered and cheeky and taking advantage of the position, because they had become so wealthy, and, in jj, way, the rulers of the State. A halt must be called, and Mn Eansom would strengthen his hands as a statesman if he told the banks that it had to be stopped. . A Serious Position.

The Acting-Prime Minister, in reply, said he quite realised that the position was a serious one to the general taxpayer. The Government had been obliged to place.. extra taxation on" all elasees and to frame.it in such, a manner that the larger institutions . could not easily pass it on, because already, by other systems of taxation, the individual, • was being 1 called on to carry what was believed to 'be a fair proportion. -The Government, had asked the banks to give particulars of what

Miey" proposed to do, and they did Hon. E. A. Ransom. give the information

that they proposed to increase the 10/ charge for accounts and to withdraw the \ 10/ notes from issue. He thought the Government was quite entitled to ascertain from the Associated Banks the exact number of customers they had, so that the Government could know whether they were carrying, any of the note tax or not. The Associated Banks had stated; that they would be compelled to pass on the extra charge in respect to the note tax, as they could not carry it. Mr. Fraser: Sir George Elliot etated eorne time ago that the time had arrived when the banks should contemplate doing away with the charge altogether. Capacity to Pay. The Acting-Prime Minister repeated his statement made to Parliament that the banks should carry their share of extra taxation in the same way as the general community, and he thought their balance-sheets proved their capacity to do 60. One thing J hat appealed' to him was that the greater the economic stress oil the country a study of bank balance-sheefe did not ehow that the shareholders had to suffer any depletion—rather the other way. The deputation was quite justified in making its representations, and he could assure them that the points would be given the fullest consideration, but just how far it was poeeible to go was another matter. The Government ought to know whether the banks proposed to take the taxation in some other direction or to carry it. If the banks' decision was to still further raise the rates of interest it might be more disastrous to the country. The Film Question. Not only had the banks indicated their intention to pass the taxation on, but the Government had had representations from other strong financial institutions also disinclined to carry it. .Film producers and insurance companies uotn were asking that the measure oi taxation upon them should be reduced. The Government had endeavoured to spread the taxation as fairly as possible over the whole community, and he thought that any endeavour on the part of the banks or othere to set out of the impost and place it on the shoulders of those already taxed should receive the serious consideration of the Government. The deputation's representations would be submitted to Cabinet for attention.