BANKS' SERVICES

Evening Post, Volume CXXVII, Issue 133, 8 June 1939, Page 14

BANKS' SERVICES

SPECIAL CONDITIONS

MEETING PRESENT SITUATION

INCOME TAX SYSTEM

The large amounts that the trading banks were called upon to pay in income tax were detailed by Mr., R. C. Addison, Chairman of the Associated Banks, when replying to a toast at the annual smoke concert of the New Zealand Bank Officers' Guild last night. The figures quoted by Mr. Addison showed that this year the aggregate amount paid by the banks between them under this heading was £720,000. Mr. E. G. Edwards, president of the guild, who presided, said he did not need to stress the fact that the banks had had a very trying year, a year of many problems, and had tried to adjust ordinary banking routine to th« changing conditions. "I feel that the banks have responded splendidly," said Mr. Edwards, "in an endeavour to help both the Government and the people of this country. I think they deserve a full measure of credit for that." He recalled America's experience in the banking world and how there wai now a tendency there to leave banking to the banks. Rightly so, because bankers were men who dpent years of their lives in learning banking and should be able to tackle those problems better than anyone else. One effect of recent legislation had been to bring executive members more closely in touch with the staff than ever before and that was all to the good, because it broke down the barriers that sometimes appeared to exist between the heads and the staffs. The guild had always stood for co-operation with the banks. They expected, and they had the right to expect, the full co-operation of their staffs. "Let us hope that in the near future times may improve, and that the banks may share in any prosperity that may come to the Dominion," concluded Mr. Edwards. In his reply, Mr. Addison said he felt no diffidence in accepting the tributes paid by Mr. Edwards to the banks, because he very fully endorsed them. Mr. Edwards had made some very fitting remarks regarding the special conditions now obtaining and that might be expected. SPECIAL SERVICE. "You can confidently assume that the trading banks have already given special service," said Mr. Addison, "and intend to give further special service in co-operating with others in assisting to meet the special situation. (Hear, hear.) • The banks are doing that despite the fact that their ability to help has been to a good extent limited by happenings in recent years. , "When I say that the banks have given special service and intend to give further special service, I might add that it is not in the nature of lipservice, but is by way of throwing in certain of our free resources in an endeavour to assist in all interests. "There is another matter on which. I would like to touch—income tax," continued Mr. Addison. "Early this year the banks between them paid some £380,000 income tax because in the previous taxation year they had held an average of some £67,000,000 from the public in the way of deposits. They paid a further £290,000 income tax between them because they had made advances to the public averaging £51,000,000. "They also paid substantial amounts in other assets and liabilities, including—and this was the cruellest rub of all—just on £50,000 on the £8,750,000 which was the average they had maintained at the Reserve Bank and on which deposits they did not receive any interest. SHELVING OF REVISION. "In quoting these figures I wish to make it very clear that I am not referring to the present Government. It is always fair to emphasise that the question of revision of our antiquated system, which was conceived 'in very different circumstances from those now obtaining, has been shelved by various previous Governments. I can only suppose that this shelving has been on the ground that it would be bad politics to be associated with a revision, which, from the banks' point of view, seems only justice and comImon sense."