TIMID INVESTORS

Evening Post, Volume CXI, Issue 103, 4 May 1931, Page 9

TIMID INVESTORS

COMMONWEALTH BANK

RUN ON SAVINGS BRANCH:

(Received- 4th May, 8 a.m.) SYDNEY, 3rd May. A run on the savings bank departin &ut of the Commonwealth Bank caused' a sensation in the pity oil Saturday, and the authorities are doing their best to check it. Long queues waited in the street outside the headquarters of the bank in Cnstlereagh street, .the police controlling the crowd of people anxious to withdraw money. The demand continued till the closing time at noon. It is regarded as likely that the bank will decide to ration withdrawals early in the week. Inquiries elicited the fact that the majority of the bank's customers are transferring their accounts to trading banks with external charters, including the Bank of New Zealand, or are using safe deposit receptacles. Sir Robert Gibson, chairman of the Commonwealth Bank, broadcasted_ a talk on banking affairs and Australian finances on Saturday night, doing his best to reassure depositors. CHAIRMAN'S ASSURANCE. In the course of his broadcast to four States Sir Robert Gibson assured customers that the Commonwealth Bank would never close its doors. He said that the Commonwealth Bank had the backing of the note issue, and he had the authority of the Prime Minister to say that the Government would support the Bank Board by any extension of the note issue deemed desirable. In any emergency the bank would meet every demand upon it. Quite a number of timid people, added Sir Robert Gibson, feared that the Commonwealth Bank would close its doors. "I know no safer place for one's savings than the Commonwealth Bank and, if anyone thinks he can find a safer place, then by all means let him come to the bank and take his money away." The chairman explained that Saturday's run on the Commonwealth Savings Bank was due to the timidity _ on the part of new customers who withdrew their savings from the Government Savings Bank and were largely responsible for its failure. Those same people, his officers informed him, were now rushing the Commonwealth Bank to transfer their accounts to some other bank, which they thought safer. BUSINESS NOT WANTED. Quito definitely lie wished to toll those "people that the Commonwealth Bank did not want their business, and the sooner they took their moiiey out the better the Commonwealth Bank would like them. The Commonwealth Bank wanted regular and reliable customers. So far as the old customers of the Commonwealth Bank were concerned he could assure them that ( the Bank Board would •do nothing to jeopardise their savings in any respect.