MR COX AND THE BANKS

Evening Star, Issue 22952, 9 May 1938, Page 10

MR COX AND THE BANKS

“ WILL HAVE TO MEND THEIR WAYS " PREVIOUS STATEMENT REPEATED Further reference to the banks was made by the mayor (Rev. E. T. Cox) in a statement in reply to a letter by the managers of the local banks giving an emphatic denial to statements attributed to him. Mr Cox alleged, in'tho course of a speech, that during the past week members of the Labour Party who were clients of local banks had been told by managers of the hanks that it would not be in their interests financially to continue membership of the party. He said that people known to be associated with the Labour Party had during tho week been called in by managers of the Dunedin banks and informed that it was understood that they were members of the Labour Party. When they had confessed to the soft impeachment they had been told that it would iiot pay them to remain in the party. When the persons affected asked for an explanation they had been informed that instructions had been received from the head office that , financial . accommodation was not to be found for members of the Labour Party. In a letter in the ‘Star* on Saturday night the managers of the local banks gave an emphatic denial to tliq, allegations of Mr; Cox, stating that no action on the lines indicated had been taken by any of tho banks nor had any sUch instructions been received from head offices.

“Personally 1 hate no quarrel with the banks,” said the Mayor in reply to the bankers’ letter. “ They fulfil a very important place in the community. I have noticed the denial to my statement, hut while I accept the statement of the managers us far as the majority is concerned, if does not do . away with the fact that customers of banks have reported to me'this weekalong the lines that I have already outlined. Tam having affidavits signed to send to the Prime Minister. “ To deal with the banks is the business of the Government,” the Mayor continued. “It is, not ray business. I merely point out- the abuse. The hanks’ attitude is not new. At the last General Election they paid for splash advertisement in the metropolitan newspapers, urging the people to keep Labour out of office. Thus they used their shareholders’ money for illegitimate purposes. Unless they mend then* ways, the days of the private banks in this Dominion are numbered.” .