INTEREST RATE

Greymouth Evening Star, 11 June 1932, Page 2

INTEREST RATE

GOVT. POLICY DENOUNCED. [special to “star.”] AUCKLAND, June 10. The Government while it has taken no action with regard to rates of interest and overdraft in connection with trading banks has assured authority to fix interest for such institutions as the Auckland Savings Bank. This interference with the people’s bank that has done so much to promote thrift in the community is strongly resented and will evoke a storm of protest from the depositors when the position becomes more widely known. The case against the Government’s action was-put this morning, by Mr H. Vaile, in the course of an interview. He said: —

“As I am not in agreement with some of the trustees as to the attitude adopted when recent legislation was before Parliament, I cannot speak as President of the Auckland Savings Bank, but there is no reason whs I should not give my views as a private citizen, and as a former depositor. The objects and effects of the .unnecessary low rate (3oe per cent, as fixed from July 1 can only be firstly to drive money to the Post Office Savings Bank, secondly, to assist the trading banks with their fixed deposits, and thirdly (and most important) to increase the savings banks profits to afford opportunity for further taxation of the thrifty. If the Government would seriously economise it would not be so bad, but it is hard to predict when its interference will stop. Politicians seem to think that the road to prosperity leads through the destruction of thrift and business.”