SAVING BANKS DEPOSITS

Press, Volume LXXIV, Issue 22371, 7 April 1938, Page 8

SAVING BANKS DEPOSITS

CO TEE EDITOR OF THE FREAft. Sir, —In ‘‘The Press” of March 31 and April 2 appear two contributions on the above topic from “Country Solicitor” and “National Credit.” Both these correspondents are trying to create the psychology that the increase, of deposits in the Savings Banks indicates an infallible sign of insecurity. These writers also contend that these, deposits indicate there is no security in the ordinary investment channels, and people with savings are forced to deposit their mopey in that institution. No other investment is safe, they say. “Country Solicitor” may be in a unique position to speak soundly on the subject of risky deposits, for truist or safe investment, but he and “National Credit” are doing New Zealand the greatest disservice possible to attempt to create the totally false impression that New Zealand is at present an unsafe country in which to invest money. These two gentlemen have failed to recognise that since the Hatry crash in England, the Stavinsky crash in Europe, the abscondings and even suicides through defalcations amongst financial agents throughout the British Dominions, the people with savings to make interest earning have discovered that the savings banks, controlled by the people themselves, are one of the safest places in which to deposit their savings at a reasonable rate of interest. This accepted belief of real safety, coupled with the most apparent greater prosperity, are two of the main reasons for the increase of deposits in the Post Office Savings Banks. The growth of new businesses (unless the finance and commerce columns publish false, data—and I am positive they do not) ’ also indicate greater prosperity and safe channels for investment, and it is only intellectual dishonesty for any missionaries of gloom to declare otherwise.—Yours, etc., GOD’S OWN COUNTRY. April 5. 1938.