TRUSTEE SAVINGS BANKS

Press, Volume XCIX, Issue 29107, 20 January 1960, Page 7

TRUSTEE SAVINGS BANKS

“Careful Husbandry

By Depositors”

(New Zealand Press Association) HOKITIKA, January 19.

Savings bank depositors are practising careful husbandry of their cash resources and in spite of the general wage order there has been no orgy of spending. Mr M. Wallace, of Westland, made this claim in his presidential address to the annual conference of the Associated Trustee Savings Banks of New Zealand at Hokitika yesterday. “The vital barometer of our operations is the comparative movement in deposits and withdrawals, and, in this regard, the last year has been most heartening, particularly when compared ; with the previous year,” said Mr i Wallace. In 1958, savings banks 1 throughout the country experi- | enced particularly heavy withdrawals, and the net gai n for all member banks from April to November was £1,418,623. This year, in the same period, the net gain has been £3,508,327, he said. "The general state of trade has always reflected itself in savings’ account balances, not immediately, and not always as might be expected. But the recent recovery in deposits owes much to the improved national economy, and the upsurge of total . balances has been enjoyed by all I member banks. “January, 1960, finds the economy of the Dominion in a very different position from what it i was one year ago.” Effect of P.A.Y.E. With the advent of P.A.Y.E. I changes in the incidence of saving were predicted, said Mr Wallace. Contrary to the expectation of many, however, the thrift clubs continued to expand. In the latter months of 1958 many depositors were withdrawing a percentage of their savings to maintain their usual standard of living. In 1959 that tendency has largely disappeared and the pendulum appeared to have swung the other way. Mr Wallace also restated long standing grievances of the Trustee Savings Bank against governmental restrictions on their activities. Successive governments had been unwilling to concede anything approaching parity with the Post Office Savings Bank.

“I refer particularly to the interest bearing deposit limit, £lO,OOO for the Post Office Savings Bank, and £lOOO for the trustee banks, and the limitations placed upon us for the opening of branches,” he said. The Cabinet had, however, approved permission for member banks to use cheque facilities for non-mercantile institutions. This concession did not include Waikato in the meantime.