FACTORS RESPONSIBLE
THE .PRUDENT COURSE
STATEMENT BY PRESIDENT
(deceived: 22nd April, 8 a.m.)
SYDNEY, This Day,
Mr. H. D. Hall, president of; the Gov-1 eminent Savings Bank, stated last night I that the Premier had placed the proposal for amalgamation before the Commonwealth Bank at the request of the Commissioners. . The factors responsible .were adverse economic conditions, damaging statements made at the last State elections, which caused a run on the1 bank's funds, and the subsequent evening Press statement relating to delay in the payment of interest on the bank's holding of State Government, securities. , , It is also pointed out that tlio recent legislation by the State Government aiming at a reduction of inter-1 est produced a very unfavourable ofEect,' and further heavy withdrawals conti'nu- , od for many weeks. Nevertheless, the Commissioners declare that the bank is quite solvent, and the proposal for amalgamation at this stage is the only prudent course to adopt in all the surrounding circumstances. ■The last balance-sheet oC the Government Savings Bank on 30th Juur, 1030, showed: Depositors' balances, £70,G.'>;i,----343; cash1 reserves over sixteen millions; and investments, fifty-four millions, of which twenty-nine millions wero in New South Wales Government stock?.
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Bibliographic details
Evening Post, Volume CXI, Issue 94, 22 April 1931, Page 9
Word Count
195FACTORS RESPONSIBLE Evening Post, Volume CXI, Issue 94, 22 April 1931, Page 9
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