LOWER BANK CHARGE

Evening Post, Issue 36, 12 February 1935, Page 10

LOWER BANK CHARGE

, FROM END OF NEXT MONTH ■<' The Associated Banks in New ZeaI land announce the; reduction of the charge for'keeping current accounts from: 10s;to 5s !per half-year to come into 'effect, after March 31 next. The chairman of the banks advises that this reduction is being made by the banks as an earnest. of their endeavour to assist the commercial and farming community generally, although, since October -1, .1930, when the charge was increased from. 5s to 10s per halfyear, the banks have been subject to material • reductions :in .their ordinary revenue through various causes, and the note tax Js still payable upon all their notes, in. circulation. . It will be recalled that when the bank-note tax, still paid by the banks, was increased from, 3 per cent, to 41 per cent, on October 1, 1930, the As" sociated Banks announced that an increase in their charge' for keeping accounts would thereby be rendered necessary, and that as soon as the note tax was* reduced the charge for keeping accounts would' also be reduced. The note tax, however, has been neither- reduced nor removed, but the note issue having recently been taken over by the Reserve Bank, has naturally brought about a steady decline in the volume of notes issued by the trading banks and still in circulation. •