RUN ON SAVINGS BANKS.

Evening Post, Volume LXVIII, Issue 102, 27 October 1904, Page 5

RUN ON SAVINGS BANKS.

AN INCORRECT REPORT. PUBLISHED. [PKESS ASSOCIATION.] SYDNEY, 26th October. A statement was published in the commercial columns of the Sydney Morning Herald .that as a result ot the proposal made by the Government to convert the Savings Bank into a State Bank, all curernt accounts would bs Converted into deposits bearing no interest unless fixed for twelve months, excepting where they were in excess of £300. Tfie statement was responsible for a considerable run on the Savings Banks, and the officials were kept busy all day paying out. In the Legislative Assembly, the Pre ntier, Mr. parruthers, said .tha statement was absolutely incorrect. What was proposed was that Commissioners should fix the amounj at which current accounts should cease to bear interest, just as the amount was limited under the present practice; but the Bill farther provided Ihat the maximum amount of interestbearing deposits should not be below £300. That meant that all amounts up to £300 would bear interest. As a matter of course, large numbers of depositor? had withdrawn their money. It had taken up the time of the staffs during the whole of the day explaining the position. The statement of the Herald, added the Premier, had done a great deal of damage.