BANK NOTES.

Press, Volume LXVI, Issue 20024, 4 September 1930, Page 15

BANK NOTES.

RESTRICTIONS ON ISSUE.

(FRXSS ASeOCTATIO* TZLZOXAX.)

WELLINGTON, September 3

The chairman of the Associated Banks announces that as a result of the Government's action in increasing the note tax from three to four and a half per cent, per annum, it has been decided to curtail the issue of tenshilling notes. He gives figures showing that, the total cost to the banks for every £IOO of notes in circulation is £6 4s lOd. He mentions that the Government ol i*s own initiative had called for return' showing the income of the individual banks it they were taxed or income ta* purposes as ordinary companies The returns furnished show that the banks were paying income tax on a arger income than they would do if thev returned their actual profits in the income tax returns Nevertheless the Commissioner of Taxes had intimated that the present method of assessing banks for income tax purposes would not be altered, Banks Were also required to pay land tax at maximum rates. The banks had decided to increase the half-yearly charge for keeping accounts from not less than five shillings to not less than ten shillings from October Ist.