Trading Banks “Will Accept Govt. Ruling”

Press, Volume CIII, Issue 30426, 28 April 1964, Page 1

Trading Banks “Will Accept Govt. Ruling”

(New Zealand Press Association)

WELLINGTON, April 27. The trading banks are prepared to accept the Government’s decision on the merits of their case for savings bank facilities and will not emulate the efforts of the trustee banks artificially to whip up public opinion, said the research director of the New Zealand Bankers’ Association (Mr J. W. Rowe), commenting on the protest letters being sent to members of Parliament by several trustee banks.

The trading’ banks have agreed -to conditions of entry that guarantee recently established trustee banks all the protection necessary in their early years. There are, therefore, no grounds for opposition on this score, said Mi’ Rowe.

The general . manager of the Auckland Savings Bank (MrH.J. Barrett) said today: “We are not frightened of fair competition, but- if they

(the trading banks) come into our field we should be allowed full rights in theirs.” He was stating the trustee banks’ objection to the move to grant trading banks savings facilities. He said that if trading banks did get savings' banks then trustee banks should obtain full trading bank rights, as was enjoyed by trustee savings banks in Scandinavia and Europe. “From a national point of view, saving the trading bank way is expensive and . uneconomical.” Mr Barrett said trustee savings bank lending rates were invariably about 1 per cent

lower than ruling rates.' Hisown bank had loaned £lO million at 5 per cent and another £7f million at 5j per cent. “We have also provided £350,000 for donations to worth-while sources in the last four years. Ask the trading banks what they have! done to match that.” Mr Barrett, who is the Australian and New Zealand, member on the board of administration of the International Savings Bank Institute, said the chairman of the New Zealand Bankers’ Association (Mr D. A. Arnold) had accused the Auckland Savings Bank of indulging in an extravagant protest campaign to “buy’* public opinion.

Mr Arnold had suggestedthat postages alone would cost £8425, -but, Mt Barrett said, campaign postages for four days had averaged £l2 a day and up till Friday afternoon at least 25,000 written protests had been received.“Mr Arnold and the Auckland manager of the Bank of New South Wales, who are both Australians and who have been domiciled here less than 18 months, have spearheaded the campaign. Is it too much to suggest they have been sent here for a take-over of New Zealand savings?” asked Mr Barrett. “It is certainly strange that foreign trading bankers should be the only ones firing broadsides in this campaign on New Zealand soil.”

More than 2000 Hamilton persons had signed a petition protesting against the Government’s decision to grant savings bank facilities to trading banks, said -the manager of the Waikato Savings Bank (Mr J. W. Brown) today. Circulation of the petitions had started only on Friday night. i