THE BANKS ACCUSED

Evening Star, Issue 15907, 13 September 1915, Page 4

THE BANKS ACCUSED

OF SELFISHNESS AND APATHY IN GIVING ONLY £i',Boo FOR THE WOUNDED SOLDIERS. After Mr- J. A. Johnstone had presented the report of the Queen Carnival Committee to the Otago Patriotic Association this morning he intimated that he had a further matter to bring before the association. He said : I have to report that it was decided by the Queen Carnival Committee that whilst on a recent visit to Wellington I should wait upon the five main'banks with the view of obtaining from them substantial assistance for the Otago wounded soldiers' fund. I found that the banks, had already decided to support the proposed national fund.for New Zealand, which was then being inaugurated in Wellington, and I was informed that the total amount they had decided to contribute was £I.BOO, made un as follows :—£l,ooo from the Bank of "New Zealand, and £2OO from each of the other four banks—namely, the- Bank of New South Wales, Union' Bank of Australia, Bank of Axistralasia, and National Bank of Now Zealand. I pointed out that the total sum the associated banks had / decided to subscribe was utterly inadequate in view of the- great wealth of the institutions, the prosperity they had experienced during recent years, and the fact that the needs of the dependents of the men who had given their lives for the protection of the banks' property, and, in fact, in order that we might continue to exist as a free people, -would be enormous. I further pointed out that the people of Otago had decided against a national fund to be administered in Wellington, and that I understood both Auckland and Canterbury districts were of the same mind. As a matter of fact, it is now evident that the Wellington people sec that the national scheme is impracticable. Notwithstanding these representations,' I got no encouragement that any portion of the banks' donations would come to Otago. I reported to my committee accordingly, when it was decided that a petition to the associated banks should be prepared setting forth the views of the leading business houses of Dunedin, and suggesting a generous contribution from the banks towards it. The petition was signed by over 40 of the oldest, largest, and most representative mercantile houses in Dunedin. The reply received was as follows :

I am in receipt of your letter of July 12, and have acquainted the banks with its contents. The position seems to be that they have all actually paid, or agreed to pay, the amounts of their respective subscriptions to the national fund trustees. I have not the slightest donbt that all subscribers throughout the Dominion are of one mind, and will insist that every Dominion soldier who has fought for the Empire shall, no matter where he comes from or where he ultimately takes up his'residencc, share equally in the Hielp that is being gratefully rendered, and that in the event of his death his dependents shall have the same rights. Allow me to wish your association every success in your" efforts for the soldiers' welfare. Otago will. I am convinced, as usual do'"her full share, if not more. As this letter could scarcely be regarded as a reply to the petition, t wrote to the cnairmau of the banks, Mr Robert B. Smith, personally and asked him to let me know precisely the decision of the banks, to which he replied officially as follows :

I have, passed on to the several banks for their perusal the letters that have recently passed between us. ' The establishment of a national fund is to be dealt with by a conference to be held in a few weeks' time, and until it is definitely settled whether such a fund is or is not to be established one of the banks desires postponement of a -definite reply to you. As regards the other banks, if no rational fund is arranged, it is possible that _ in some instances subscriptions promised for it may, in part, he diverted to the Otago "fund, but I only ! say "may," ne I have no authority to I make nich a suggestion. I I think you will agree with me that this [letter is most unsatisfactory, and quite uiiworthy of the largest aiid wealthiest financial institutions in Australasia. To use Mr Lloyd George's recent expression in connection with the mining strike in South Wales: "It sickens one at heart" that there should be any need to make urgent and continuous appeals r>n -behalf of the families of the gallant fellows who arc facing danger, mutilation, and death in order that we may retain our property and our freedom. Such selfishness and apathy on th? part of vr sal thy institutions and individuals cause one to pondor and to ask one's self the question: Are we, worthy of iho sacrifices that are being mado for,ns and ours, and if, as I gent, we are not doing our duty, do we deserve to win, and can we hope to win? I am quite j.ware in making these, remarks that is is. possible, and perhaps proper, to say that the Governments of Australia and .New Zealand should bear all the cotts of the- war, and make all the provision that is necessary for the dependents of our soldiers and sailors ; but the fact remains that no Government have ever done their duty in this direction, and it is for that reason that it. becomes, I think, incumbent upon' institutions and individuals who are in apposition to do so to supplement generously efforts each as wo are making to see that no man, woman, or child shall be permitted to suffer want because of the disablement or loss of their breadwinners. I am awaiethat the banks, or some of them, have already contributed to other patriotic funds, but. the amounts are quite insignificant when the affluence of these- institutions is taken into account. For instance, at the recent annual meeting of the Bank of New Zealand, the chairman said that the bank had donated £3\OCO to tho Expeditionary Force fund, and that it had remitted patriotic moneys to various places free of exchange, representing a loss of profit to the bank of £I.BOO. Well, let us assume that this bank's total donation amounts to £5,0C0, audi add to that the £I.OCO promised to the po?ed national fund, and let us see what it works out on a. percentage basis on the disclosed profits cd the. bank for the year ended March 31 last; and in considering, let it not be overlooked that the actual profits would" be very much more, tor doubtless, and properly so, in view of the results the war as certain to produce, depreciation of securities, premises, and other contingei.cics- Will have been more than amply provided for. w that the percentage oi the donations to the profits will be less even than is disclosed. The net profit for the Bank of New Zealand fo.- the past year was £596,166. The donation to the wounded soldiers' fund is equal to 1.51 per cent, or £1 10s -3d out, of' every £IOO of disclosed profit. As to the other banks, I cannot make the Mine comparisons, as tho data ie not available; but their annual net profit, acording to their-latest balance-sheet?, was as follows; Bank of New South Wales. £485.729; Bank of Australasia, £454.515; Union Bank of Australia. £331.541; National Bank of New Zealand, £144,896. licet' of thesa hsnks have been carrying on in New Zealand for over 50 years, and havo made a large proportion of their profits in the Dominion. So far as I am aware, this is the first occasion upon which they b.3.v6 been urged to assist ailv New Zealand fund, and T think you will agree that they have not risen to it. It seems u> me," in view of the profits, that they ha.va made hero, their gTeat accumulated wealth, and of xhe treatment of our appeal, that, we should pass a resolution on tho subject and make representations co the Government thereon. 1 beg to move that the Otago Patriotic and General Welfare Association call the attention of the Government of New Zealand to the fact ihat the Bank of New Zealand, the National Bank of Ness: Zealand* th.e_

Bank of New--South Wales, the Bank] o3 Australasia, and the Union Bank of I Australia have only promised amoiyjEt j thorn, a, total sum of £I,BOO towards t-ba proposed national fund for tho wounded \ •soldiers of this Dominion, and they urge that this fact be duly noted when the Government war tax proposals are under consideration. A copy of the resolution, a& well as a copy of tho report of these procecdirgs, to be sent to the Minister of Finance and every member of mentMr G. Fenwick : I second that motion. To my mind it is one of the most pitiable exhibitions of callous parsimony ever disclosed. (Hear, hear.) It would be- ab-. solutely unbelievable, were it not so fully verified by the facts and figures of Mr Johnstone 6 statement, that these institutions should disgrace themselves by offering such a miserable amount as "£I,BOO from the whole of New Zealand. (Applause.) Mr John Roberts said that before the motion was .carried ho would like to say a word. One institution that he knew of was prepared to pay £2,000 in addition to what it had already paid in. But this institution had branches all over the Dominion, _ and that was the difficulty; for it was impossible to subdivide that sum in such a way as to give each district its fair proportion. The institution to which he referred—he could not name it, but probably the name would occur to members' minds—had therefore decided that, until some national scheme was disclosed, the full amount that was intended to bo subscribed would not be paid over. What else could this institution do? It could not be expected to give small contributions to all its branches. The subscription must be paid into a national fund. He knew of two other firms each of which was prepared to give £I,OOO, but the position of these companies was such that they could not see their way to distribute to local district funds what they proposed giving. He hoped that this conference in Wellington would bring out such a scheme as would" enable the arrangements that he had referred to to be carried out. The Mayor : I am sure that the whole of the meeting is in accord with the resolution and the sentiments expressed by Mr Johnstone. Mr P. R. Sargood said that while he perfectly sympathised with the motion and the meaning behind it, he did not think ■that this association should introduce the names of institutions or firms. It was making distinctions which were not right. He added : I freely admit that those"institutions which have been, mentioned have not done their duty, but there inav be something in their rides to prevent it]' and anyway we should not draw these distinctions. Mr M. M'Allen remarked that perhaps •the employees of these institutions who had been asked might get into trouble if they had given as it was suggested thev should have given. The money was notthen* to give away. Tho shareholders had the matter in their handd. The Mayor: They haven't done it. The motion was put and carried, about half a. dozen voices dissenting, and Mr Theomin remarking that it was not the proper way .to do it.