THE TRADING BANKS.

Auckland Star, Volume LXX, Issue 263, 7 November 1939, Page 6

THE TRADING BANKS.

In his first letter on this subject your correspondent '"Forty-five Years a Worker" contended that in the establishment of a State trading bank '""busiTiess ability would be left in the background" and that "it would lead to tha lending of money on all sorts of wildcat ventures and the insolvency of the bank itself." His contentions are based on nothing more substantial than conjecture tinctured with a little political bias. There is no reason to suppose that a State trading bank should, or would, be run less efficiently than a State savings bank. I rebutted his fanciful contentions with a statement in agreement with recorded facts. In his last letter he evades the point at issue and indulges in further flights of fancy. In referring to the recent Government loan he says that '""the strong banks saved the. weak Government." The picture of '"the strong banks"' rushing to the rescue of the present Government is a bright production of unconscious humour. Your correspondent should know that all those who subscribed to the Government loan did so in the full knowledge that it was a gilt-edged investment. .TAY SEE.