Greymouth Evening Star. AND BRUNNERTON ADVOCATE. FRIDAY, JUNE 16th, 1922. BANK OF NEW ZEALAND.

Greymouth Evening Star, 16 June 1922, Page 4

Greymouth Evening Star. AND BRUNNERTON ADVOCATE. FRIDAY, JUNE 16th, 1922. BANK OF NEW ZEALAND.

'‘Safety first” has long been the wise policy of Dominion bankers, and the latest report of the Bank of New Zealand is of that nature to prevent cause for

sleepless nights by shareholders or depositors. The country is accustomed to a healthy condition of affairs being shown in our pre-

mier Bank’s annual report,; and none will dispute the Chairman’s claim that despite a falling off of over £140,000 in the' profits as compared with the previous year’s trading, the operations of the twelve months now under review were “quite satisfactory”— to the Bank. This is the first annual report issued since Mr George Jl/fliot became chairman, following Mr 11. Beauchamp’s re-

tirement, and his speech is mainly a defence of private banks as against State or similar institutions. Brom those who oppose the latter, very little criticism will be forthcoming, but others will perhaps think that Mr Elliot is protesting too much. It is natural and commendable for him to claim that the private banking system is best for all concerned, but there are large numbers in this country, including experienced financiers and business men, who believe that the formation of a State Bank, on similar lines to that operating in the Commonwealth, would prove remunerative to- the national

finances, directly and indirectly. Until there is a change in Ministry the question is more academic than practical, because Mr Massey is not in favour of a State Bank, but when the Liberals regain power—or when in years to come a reformed Labour gains

the confidence of the bulk of the electors, —the chances are that a State Bajnk will be available. This may not show such large profits in its annual reports as can the Bank of New at present, but the community generally should receive less arbitrary treatment. The private

banks exist mainly for the purpose of making profit, which they contrive to do in no half-hearted manner, and no real evidence has yet been brought forward to prove that such v privileges of banking could not be acquired by an institution working wholly in public interests. Mr Elliot did not refer to questions frequently asked as to when the Dominion banks will forego their present charges for keeping accounts and for internal exchange, and vet such concessions could safely be made, and still leave the banks handsome profits. It is blit human for outsiders to wonder if the bankers’ claims are wellfounded that their interest and other charges arc as low as practicable, when even in a period of

slump, when most trading concerns and the primary producers are hard put to it to make a little profit, the banks go from strength to strength.. Money makes money, proverbially, “but in the case of our banks, need it make so much?