SAVINGS BANKS.

Auckland Star, Volume LXVII, Issue 233, 1 October 1936, Page 16

SAVINGS BANKS.

' state guarantee? QUESTION BY MR. ENDEAN. FINANCE MINISTER'S REPLY. (By Telegraph.— Parliamentary Reporter.) „ • v _ WELLINGTON, Wednesday. Replying to Mr. W. P. Endean (National, Parnell) in the House of Representatives to-day, who asked whether the Minister of Finance was aware that people outside Parliament were under the impression that the Auckland Savings Bank's deposits were guaranteed by the State, Mr. Nash said that savings banks were guaranteed to the extent that, should the interest received on- sums lent, after paying therefrom the salaries, charges and expenses of the bank, be insufficient to pa,y interest on deposits at the rate fixed, the- sum required to make up the deficiency shall be payable out of the general revenue of New Zealand. . ' J The Minister quoted section 22 of the Savings Bank .Act, 1908, and added: "Where the trustees' of a savings bank are unable, without the assistance of the Government, to meet the demands of depositors, the Governor-General may guarantee repayment of any loan negotiated by the trustees to meet the demands of such depositors. Such loans are limited to £1000 in respect of any one savings bank (section 26, Savings Banks Act, 1908)." '