BANKS FOR THE PEOPLE.

Evening Star, Issue 19272, 10 June 1926, Page 2

BANKS FOR THE PEOPLE.

TO Xil-i; EDITOII. Sir, —Are banks really for the people? Heading the result of tho iiauk of New Zealand for the twelve mouths ended Msu'ch 31, in your issue of to-night, makes one pause and think. After allowing for all expenditure and bad debts this bank shows a not profit of nearly on© million sterling. in a young country of only a million population we have an institution winch can make £1 per head clear profit for every man, woman, and child in it. Couple this to tho profit of the National Bank and the Now Zealand profits of the Australian banks operating here, and bank profits become too formidable for tho service rendered, it is astonishing that they can publish such returns without a blush, and not even hint at lowering the bunk rate. Banks are no longer lor the people. The position is reversed, and we might well say, “The people to? the banks.” Wo are not a country of bankers, but wo are a country of producers, more than half of whom are suffering under the strangle-hold of excessive bank interest, either directly from .banks or per medium of stock agents controlled by high overdraft charges by the banks. From the depleted proceeds of wool and mutton alone twelve million sterling less than last year is to bo denied distribution amongst the one million population this year, the Bank of New Zealand can show a net profit of approximately one-twelfth New Zealand’s return for her staple item of production—wool. By all the laws of averages the welfare ol banks has fluctuated with the welfare of the country; yet New Zealand has not fared well tills year, but the banks have. The producer faces his season 1920-27 by taking up another two holes in his belt; the bank director consults his tailor about getting seams let out a few inches to allow lor ins expanding girth.—l am, etc., Lowek Bank Rate. June 8.