PRODUCE & MARKET REPORTS FROM DAY JO DAY

Evening Post, Volume CXV, Issue 68, 22 March 1933, Page 10

PRODUCE & MARKET REPORTS FROM DAY JO DAY

BANKS ATTACKED

A VIGOROUS REPLY

"HASTY LEGISLATION-

'Evening Post," March 22.

Headed "111-informed Criticism o£ the Banking Structure," the National Bank o£ Australasia deals vigorously with the recrudescence of criticisms of the banks in Australia and especially the policy they are pursuing. The criticisms in large part 'appear to be those from politicians of a certain school who also have disciples in New Zealand, The bank expresses its! regret '.. that -some politicians would I seem to aim at wrecking the very institu-1 tions which, by discriminate use ot1 their resources, -have assisted the Governments in then-efforts to surmount the grave difficulties with which they were beset. It is especially regrettable, the statement continues, because it might disturb that feeling of trust which exists between the people of Australia and the banks. "It is altogether a wrong attitude for politicians to adopt when they are so well aware of the great necessity jiot only for maintenance of the existing general feeling of confidence, but also for continuance of sound banking policies. It should be the aim of every good citizen to bond his energies towards the establishment and continuance of solid recovery in the Commonwealth, providing well-paid work for tens of thousands of citizens. ■ NEEDS FOR DEFENCE. ; "The real need for concern at the recent thrusts at the banks, however, is one for consideration by individual members of the community. The present attack is directed at the banking system, but, just as likely as not, may be against others tomorrow whose prices, profits, or methods do not accord with the views of certain people. The primary producer, manufacturer, retailer, contractor, in fact, any man in business, may later find it necessary to defend himself against, onslaughts of this character, and it is as well that he should understand this aspect of the matter, and take steps to record his disapproval. '.. ' . ' ■ '"Those dissatisfied critics of present-day difficult business conditions are prone to grope for relief, in the hope that it may be found in a form causing them neither suffering nor sacrifice—hence the attention that is often paid to queer so-called reform schemes," which can hardly be classed even as palliatives, and which, though each acclaimed by its sponsors as the one complete and permanent remedy for the ills of the social system, never come to fruition. THE PRIME NEED OF TODAY. ':-What is needed is not so mucli cheap inoney for everybody, the capable and the incapable alike, but a resuscitation of international confidence and friendliness, and a recognition of the principle of international interdependence, which, combined, would lead to a revival in industry ] and enterprise, offering not only reasonable prospects of paying fair wages, but also wisning profit, and thus providing interest on capital. "One of 'the principal complaints of the critic is that the banks have refused to 'release' credit. To "well-informed residents of the Commonwealth it is very apparent, and it is also the general experience of the banks, that in time of depression business cannot as a rule usefully employ borrowed money. It is noteworthy, however, that, despite declining 'values, the banks have retrained from adbpting a harsh policy of calling up advances, and have also provided a sufficiency of credit to keep the wheels of industry and production moving. ; BANKS HAVE KEPT THEIR [ ' HEADS. "The man in the street knows the inevitable end of the bank which is willing to lend depositors' moneys without exercising reasonable discretion and care to the nature and extent of the security and the objects of the borrower. Yet many critics would have the banks tread a path go full of danger and risk of disaster." It is claimed for the banking institutions in Australia that, despite extremely perplexing times, they have kept their heads, being neither optimistic, nor pessimistic, but providing powerful help to borrowers, including Gover-nrnents, without endangering the funds entrusted to them fey depositors. They are doing all they can towards1 maintaining the confidence of the people by endeavouring to achieve sound and solid progress in the Commonwealth's finances and general welfare. The obstacles to recovery are not in the monetary system. But before resorting to attacks upon it—the most dangerous of all subjects for hasty legislation—it will be. prudent policy, the National Bank suggests, to study other features of the present situation.