NOTE ISSUE.

Press, Volume LXVI, Issue 20025, 5 September 1930, Page 13

NOTE ISSUE.

, ■ -—♦ RESTRICTION BY BANKS. QUESTIONS IN THE HOUSfci. [THE PEESB Special Berrtce.] I—WELLINGTON, September 4. A statement that it was the intention of the Associated Banks to restrict the issue of 10s notes on account of the increased bank note duty and to increase the charge for keeping accounts was referred to by_ Mr F. Langstone (Lab., Waimarino) in the House of Representatives to-day in an urgent question addressed to the Acting-Prime Minister (the Hon. E. A. Ransom). The text of Mr Langstone's ques-. tion was as follows: —"Whether the , Acting-Prime Minister is aware of the drastic and conoerted action taken by the Associated Banks to place a further burden of taxation on their customers: "(1) By raising their charges for keeping accounts by ten shillings per annum per account as from October Ist, 1930, which is an increase of 100 per cent. " (2) Bj reducing the note issue to avoid paying taxation by way of note tax to the Government? , "Will the Government introduce legislation ■- this session limiting the rate of dividend to shareholders and imposing a tax of 50 per cent, on the undistributed profits of the banks?" Mr Ransom said he had seen references in the Press to the question raised by Mr Langstone, but the Government had received no official advice on the subject. The position, therefore, had not yet been considered by the Government. "I may say, however, that every section of the community is being called upon to bear increased taxation at the present, time, and the published balance-sheets of the several banks" indicate that it is equitable that they be called on to do their share toward meeting a difficult financial position without further hampering the commercial community or the farmers of the Dominon,'' added Mr Ransom. "1 may say that I have already asked the chairman of the Associated Banks fpr particulars of their intentions, and when all the necessary information is available the Government will consider whether any

further action should be taken in the! matter." • The Leader of the Opposition (the Rt. Hon.. J. G. Coates): What can you do? ... .\ ; •••; Mr Ransom, who did, not heed the Question, said: "The suggestions made regarding limitations taxation of undistributed profits would receive consideration by the Government."