Assignee’s plea

Press, 3 July 1979, Page 3

Assignee’s plea

P.S.I.S. members would be fools if they did not continue to deposit money with the society, the Official Assignee (Mr E. A. Gould) said yesterday. In an unprecedented move for a man in his position, Mr Gould has. issued his personal assessment on how P.S.I.S. members should act. The letter leads: “First, let me say that in a normal case, the public failure, whatever degree, of a financial institution, will almost inevitably lead to its complete failure. Recovery, especially in times of economic stringency, is always difficult. “It is my firm belief that the P.S.I.S. is the one institution which is in a posi-

tion to disprove the general rule. “I say this because it has the protection of special

legislation, the services of | probably the best manager it I will ever be lucky to get, a I very much more stable asset I basing than the other organisations which have failed in | recent years and, most of all. it has a membership which is so much more capable of sensibly evaluating the factors involved and making the decision that is best in their own interests.” Mr Gould offered two alternatives. “The first is bitterly to blame others for the position we find ourselves in, c ..reel our salary deductions to the P.S.I.S. and then sit and watch the collapse. The result will be calamity for all those (including me) who have put all our spare cash and savings into the society’s hands. “The collapse will then be very largely of our own making. “The second alternative is for us to bite on the bullet of our frozen funds, scrape up enough cash to make next month’s mortgage payment and continue to have the usual deductions made from our salaries to the P.S.I.S. “We will thus keep our savings bank operating for O’.r own benefit, allow Mr Stannard to keep the shops going while he evaluates and restructures them, maintain the income from mortgage repayments and rents, and ensure that our frozen funds are not wiped out by losses dn forced sales. “Remember, what we put in from now on will be completely protected,” said Mr Gould.