DEPOSIT AND OVERDRAFT.
COMPLAINT OF MAYOR OF CHRISTCHURCH. (special to "the PRESS.") WELLINGTON, November 30. "Tho bank tells us that the Government will not allow the loan money to be set off against overdraft, and the Government tells us that the banks will not allow it to bo done," said Dr. Thacker, in reference to the fact that the Christchurch City Council had on deposit with its bankers some £45,000 of loan money which it was not permitted to reckon against an overdraft that was costing seven per cent. The loan money could not be used just at present, the member added, and it would have to lie at the bank for another six months at least. The rate of interest to tine debenture holders -was 6J per cent. Mr Massey: Am I to understand that the money is borrowed money on deposit at the bank, and that the Council is receiving no interest? Dr. Thacker: That is so. \ Mr Massey observed that that was! a very extraordinary state of affairs. The whole question touched upon by the member was under consideration at the present time, and h e hoped to be able to make an announcement about it before the end of the session. The Government had never done anything to prevent a bank from paying interest on any money which it had on deposit.
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Bibliographic details
Press, Volume LVII, Issue 17317, 1 December 1921, Page 6
Word Count
226DEPOSIT AND OVERDRAFT. Press, Volume LVII, Issue 17317, 1 December 1921, Page 6
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