SAVINGS BANK DEPOSITS

Evening Post, Volume CVI, Issue 27, 1 August 1923, Page 11

SAVINGS BANK DEPOSITS

USE. OF CHEQUES,

Some discussion upon the Savings Bank Amendment Bill took place during Uie Committee stage in the House of Representatives yesterday. Replying to ciiticiem, the Prime Minister pointed out that the maximum amount upon which interest was payable had been increased last year from £100 to £200, and he did not think it advisable to make a further concession.

Mr. W. A. Veitch (Wauganui) pointed out that it was possible in a city like Auckland, where there were several savings banks, for a person to make, several deposits of £200 in different banks and >to receive interest on each amount. He advocated the use of cheques by sa-vin^s bank depositors, pointing out that this would encourage deposits by people living in the country districts. The Leader of the Opposition (Mr. T. M. Wilford), who supported the. suggestion, said it would necessitate the repeal of the 2d stamp duty on cheques; other wise there would be little use in giving facilities to depositors. It would be iniquitous to impose a duty of 2d on every cheque used in the Post Office. Mr. Wilford drew the ■ attention of the Prime Minister to an advertisement of the Government Savings Bank of New South Wales, specifying 4 per cent inteTest on accounts up to £500, 3^ per cent, on any excess up to £1000, .and a cheque account for any person, bank, or institution. Apparently the cheque system had been tried in other countries, and he suggested that the Minister should secure information with a view to its establishment in New Zealand.

The Prime Minister said he would take no exception to anything that would tend to popularise the Post Office Savings Bank, which waE_ already an extraordinarily popular institution. He would be glad to introduce, anything that would be of benefit to the bank or the depositors. ■

The Bill was put through its final stages and passed. '

The only amendment to the Bill was the insertion of a clause enabling trustees to establish superannuation or provident funds for persons in their service.