MUNICIPAL FINANCE.

Evening Star, Issue 21523, 22 September 1933, Page 12

MUNICIPAL FINANCE.

TO THE EDITOR. Sir,—W. Dickinson suggests the establishment of a municipal bank. _ the ‘New Clarion (London), of Juy 23, 1932, I find Jollowmg paragfaph :—bounded m 1920, Bim ingham Municipal Bank is,thofmsV e ample of municipal .banking in Jtms country governed by the elected rep . sontatives of the city; F un benefit of the citizens of Birmingham. For the year ended March 31, lad-, its business has expanded, depositors increasing by 11,365. Savings of 344,684 Birmingham townsfolk deposited with the bank now amount to £13,682,646. Eight hundred and anyone new mortgages have been granted bv the bank’s home purchase department, making 6,962 mortgages m ail. totalling £1,820,311.” In the annual report .recently issued appears the ipilowing;—‘‘The citizens generally will be pleased to know that, although the bans is not run with the object ot making profits for distribution, out rather to provide facilities for saving and to render public services, there is an excess of income over expenditure on the year of £35,285 14s 6d, which has been transferred to reserve. i understand other districts in England have applied to institute fhese hanks, and if Birmingham can make a success of it no doubt we here could ■ do so also. It is surely long overdue for this policy of banking to be added to our other municipal services, and this should be pushed for all it is worth. If our local bodies pledge the industry of the whole people as a guarantee to our private moneylenders for their private Joans,, surely, ste*: as-itho; sup-

pliers of this guarantee, should demand that our local bodies include banking in their functions and issue their own loans to themselves as acting for. all the people in their own interests. Perhaps then we shall have no need to "send our future town clerks to London and beg for a further extension of our indebtedness.—l am, etc., P. Neilson. September 21.