TWENTY MILLION POUNDS.
Mr Ward undoubtedly scored when in his speech at Hamilton on Saturday he referred to the prosperity of the colony. Speaking generally, and without admitting that the Ministerial view of the situation is not too sanguine, there is no room for doubt that
the colony is much more prosperous than it was three or four years ago. Equally, also, it may be taken for granted that to whatever extent the actions of a Government can stimulate or retard progress, the Ministry may claim to have succeeded in building up that prrgress. But on the other hand we think Mr Ward is mistaken in some of his conclusions as to what constitutes a proof or prosperity. Twenty million pounds, for instance, in the post-office savings bank, is regarded by him as direct evidence that the country is flourishing. Well, he would have a difficuit task to prove his thesis, but we will lighten it somewhat by assuming that he never said anything of the kind, and consequently does not think to the effect suggested. At the end of 1899 the total of the deposits in all savings banks, both public and private, was £0,128,298. As it is quite impossible, therefore, that this sum has increased in one year by over thirteen millions, we can only conclude that the reporter or the telegraph operator responsible has made a bungle of the figures.
But when that is said another important question remains. There is a sum of twenty millions in the case, but it represents the total of all the deposits in all the banks of issue and all the savings banks. Of this sum nearly nine hundred thousand pounds is in private savings banks, so that of the twenty million pounds which we may presume Mr Ward did actually refer to, fully thirteen million pounds is in the form of deposits in the various banks of issue (including the Bank of _Tew Zealand) but excluding Governrnent moneys. If we could discover how much of this total of twenty millions is in the banks for safe-keeping, held at rates of interest considerably below what is regarded as " current rates," we should be able to make a guess as to how far bank deposits spell prosperity. For example, of the six millions (in round numbers) which are in the post office savings banks, part will be earning no interest at all. Deposits not exceeding two hundred pounds are credited with three per cent interest, exceeding two hundred and not over five hundred pounds, two and a half per cent is allowed. On sums exceeding five hundred pounds no interest at all is paid. Does it not seem just to conclude that there would not be so much money in the banks if speculative undertakings were more in favor than they are ? In other words, is not a lack of commercial confidence indicated by the facts ? If that be so, and if Mr Ward could discover the cause of that speculative timidity, and remove it, a much greater tide of prosperity than we enjoy would be experienced.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/DTN19001210.2.14
Bibliographic details
Daily Telegraph (Napier), Issue 9939, 10 December 1900, Page 4
Word Count
515TWENTY MILLION POUNDS. Daily Telegraph (Napier), Issue 9939, 10 December 1900, Page 4
Using This Item
No known copyright (New Zealand)
To the best of the National Library of New Zealand’s knowledge, under New Zealand law, there is no copyright in this item in New Zealand.
You can copy this item, share it, and post it on a blog or website. It can be modified, remixed and built upon. It can be used commercially. If reproducing this item, it is helpful to include the source.
For further information please refer to the Copyright guide.