OVERDRAFT INTEREST

Evening Star, Issue 19856, 3 May 1928, Page 2

OVERDRAFT INTEREST

CHAMBERS OF COMMERCE DEMAND REDUCTION [Pm United Tanas Association.] WELLINGTON, May 3. Tho following letter lias been nJdressed by the president of tho Associated Changers of Commerce of New Zealand (Mr D. J. M‘Gowan) to the chairuian of tho Associated Banks; — When the association last addressed you ou the subject of rates the figures of the March quarter were not available. Having since been made public, they have afforded ample proof of the easier monetary condition of the dominion. If figures were available relative to the deposits and advances of the blinks to-day, would they not disclose a position even better tlian that shown by the figures of tho March quarter!'' The averages of the trade figures for the year ended March 31 also are evidence that, for tho time being at least, a check has been given to overtrading. “In the circumstances, my executive is of opinion that tho Associated Banks should reduce the rates charged for advances on overdraft, at least by tho extent of tho J per cent, advance made in May last. If not expedient to make the reduction apply immediately, at least the announcement could be made, to take effect say on June 1. “The rates•charged by the Associated Banks are not only accepted as -jh index of the conditions within the dominion, and govern the rates of financial operations, such as loans on mortgage, but largely “ set the pace ” of development in both tho primary and the secondary industries. No evidence of returned confidence would bo more significant than the decision which we again ask the associated banks to make without delay.”