BANKING MONOPOLY

Greymouth Evening Star, 30 May 1914, Page 8

BANKING MONOPOLY

HOW THE PUBLIC ARE FLEECED. NO INTEREST ON MONEY AT CALL. LNVERCARGULL, May 25. Dealiuw with monopolies and the affection entertained lor them by the Massey Government, Mr H. Atinore, during his visit to Southland, referred to the Bank of New Zealand. That institution was made by reason of the country's guarantee of two millions and the country's- possession of £500,000 shares, and it was virtually a Stale bank, except in the disposition of the profits. What benefits had the public received as the result of their coining o the bank's rescue and preventing a financial catastrophe. The bank certainly paid a dividend of 12 per cent. and upwards on the shares held by the private'shareholders, and the Hon. James Allen considered that the country had reason to congratulate itseJt upon receiving substantial dividends, but those dividends were wrung from j ihe public by medium of excessive j banking charges. ,-,.<,,,„<-< i THE BANK'S DEPOSITS. Deposited in the bank were twelve and a quarter millions of money at, call, principally in the shape of small | tradesmen's current accounts, ana no j interest was paid un this vast" amount ; instead the depositors were charged 10 >| i year for book-keeping Two-tlur- so, this money, or approximately <ngm million nound-s, was actually ent on , by the bank to the public r.t the cui - ( cLt rate of interest, which.went into its coffers to help to swell the d u-;j dends Was it because of '-heir bein Juts oxoloited that the public e e xsked by Air Allen to iheiuselvos? The Übe-als h:u n-e.. Wired to i»ass a clajiw <*'»P«Uing >}£ 01ia 1] moneys deposited at cal ,bn Mi >lassey and his party had def.ed it. STATE FUIK INhl UANtK • S U ph„ia„.-..d,no„t would have had -he pfTpcl of cheapening, the. bailing lu'.l, public Juki as insunmc, uid been cheapened when tho btate _ Kin. Insurance Office entered into com-: pelition with the private W""*' and the Massey Government km v. :,nd prevented its being passed lhat s elf-sanie Government paid 32pel cent. | upon deposits at call in the Post Ogee, Savines Bank, where sixteen millions wS deposited. Nevertheless tney.wer ■ r ~, ~, i 1,,. mi""'os ion that oanws SSfßi olUtme!' H was but an ; oSr illustration, of party's dread of interfering with anj of their beloved ''E A-Sl LY O NDERS rOOD. They knew only too wel what bad lian ened in connection with the LiberaKstabUmont of State * ire Insurance, which had resulted in a a uig of £1.500.000 to the people in ii.suia u pretniums, and the mtroduc',oa « ol a cheap money scheme, which bad Lertucel the moneylenders rates of in-, SStfrom 8, 9 and 10 per cent £ ihe Government rate of 5 per cent. [1 proposal to compel the Bank of New Zealand to pay 2 per cent >ii money deposited at call on the sa linp if reasoning, would save Hi' eon 1, of Ibis country £160,000 anualiyat least, yet the Masscj Government would not entertain the idea, j When it was remembered how bitterly, Ihev had 'opposed State lire _ insurance , md cheap money schemes this attitude W as very easily'understood. j