NO CHEQUES.

Press, Volume LXV, Issue 19645, 14 June 1929, Page 8

NO CHEQUES.

P.O. SAVINGS BANK. MINISTER REFUSES AUCKLAND REQUEST. [THE rUIS Special Iwto.J AUCKLAND. June 13. The request that provision be made for Post Office Savings Bauk account* to bo operated upon by cheque has been declined by the Hon. Mr Donald, Postmaster-General. The proposal waa recently made to Mr Donald bv a deputation from the Auckland Provincial District Conference of Friendly Societies. , ■ - Explaining the serious objections in the way of acceding to the mjuest, Mr Donald says : 'The primary objuct of u.e Post Office Savings Bank is net to provide facilities for the easy withdrawal cf tnonevs, but to encourage thriit. Tit provide for withdrawal by cheque would involve a complete alteration of the present system, the fundamental conditions of 'which is that the tkpo«it jwok must be presented i-r making therein at the tune of payment of the niHVSsary entry of withdrawal. If an arrangement were made under which cheques could hedrawn on the Post Office Savings Bank the character of the Bank would I* immediatelv changed and the hank would be' brought into competition with the commercial banks. Moreover, the expense of management would t-e largely increased. A Fystem of withdrawal by cheque would not be v<v> fined to any one section of depositor*, and it is estimated that the expense of applying such a sy*teni generally would be go great that it could be arranged only by making an anirial charge, as is done by the commercial banks, or by reducing the rate of interest paid to depositors. "In connexion with the reference at the interview to the system of operating on Post Office Savings Ban* accounts by mer.rts of cheques stated to be in operation on the West Const of the South Island, it is understood that the private Savings Bank in Hokitika permits its deposits to make withdrawals by means of cheques, and it is this bank, no doubt, the m'-n K "r of the deputation had in mind "'