DUNEDIN SAVINGS BANK

Evening Star, Issue 22326, 30 April 1936, Page 13

DUNEDIN SAVINGS BANK

THE YEAR'S FIGURES THRIFT OF THE PEOPLE An interesting review of the operations of the Dunedin Savings Bank for the past 12 months was given by the retiring president, Mr J. H. I’’. Hamel, at a meeting on Wednesday night when moving the adoption of the report and balance sheet. Mr Hamel said that the figures were an excellent illustration of the thrift of the people of Dunedin and suburbs. The total deposits, including interest, Mr Hamel said, amounted to £2,305,471 19s Bd, and the number of depositors to 34,259. The first arresting factor was the astonishing numerical aspect when the population of Dunedin was taken into consideration, and the second factor was the evidence of small savings. Considerable credit was due to the manager, Mr Quaile, and his staff for their untiring service in the interests of the institution and its customers and for their work in handling no less a sum across the counter than £1,700,000 in deposits and witdhrawals. In harmony with the small depositor, the policy of the bank had been to loan out its moneys in small sums, whenever possible, to assist those who desired to” create a home of their own; and numbers of new homes had been made possible during the past j r enr through this form of mortgage.

Rural lands, which during the recent economic crisis, were viewed with much concern on account of the low prices ruling for our primary products, were regaining their earning power. The bard fight which the farming community had made throughout the depression was beyond all praise. The Rural Committee of the trustees who dealt with this aspect of the bank’s business deserved, their best thanks for the tolerant attitude and sympathetic consideration towards those who had experienced difficulty in meeting their obligations. A notable feature of the Rural Committee’s work was a cheering word to many farmers when the struggle was hard or a friendly call on the rarmer when things were running smoothly. The personal contact, Mr Hamel said, should always be maintained in the affairs of the bank, no matter how great its expansion might be. The rate of interest had been maintained at a definite level for some time, but conversations with banking authorities showed there was a hardening tendency. During New Zealand’s economic difficulties it was found necessary to explore every avenue for taxation purposes, and the savings banks of New Zealand were called upon to pay income tax. The amount paid this year by the Dunedin Savings Bank was £6,435 11s Bd, In his opinion savings banks should be relieved of this tax immediately the national finances permitted. There was an element of unfairness in such taxation incidence, continued Mr Hamel, as certain provinces did not possess banking systems similar to the Dunedin Savings Bank, with the result that the people who made small savings contributed to many parts of New Zealand where the population did not contribute their share. This was not stated in a parochial sense, but mainly to draw attention to an unjust incidence of taxation. A further effect of this tax was the lessening of the bank’s donations to local charities and to educational institutions.

For many years a small sum was set aside for the purpose of instituting a superannuation scheme for the employees of the bank. The proposal had been well received, by the New Zealand Treasury officials, and such would be an active principle in tho constitution of the bank at an early date. The bank had definitely set its face against any attempt to include business which rightly belonged to trading banks, with the result that the best of relations existed between the Dunedin Savings Bank and between the trading banks of Dundin and probably of New Zealand.