STATE BANK.

Grey River Argus, 6 May 1922, Page 4

STATE BANK.

MASSEY’S VIEWS. FA VO ÜBS THE PRINCIPLE. WELLINGTON, May 5. When Mr Massey was in Gisborne he was approached by Mr Francis Stafford on the subject of a State Bank, and, in replying to the interviewer, he promised, on his return to Wellington, to send a written reply. In reply, Mr Massey analyses the assets and main figures in tho balance sheet of the Commonwealth Bank. Ho says he is disposed to view with favour any State Banking Business under exclusive Government management. Mr Massey remarks:—“The profits made by the Commonwealth Bank during the 10 years for which I have complete figures have amounted to £3,451,365/13/10. That sum is equally divided between the reserve and redemption funds of the bank, and it actually represents its sole capital. Tho greater part of the bank’s general business consists of the accounts of the Federal and State Government, with their many branches of activity, and of the accounts also of quite a large number of local bodies. As a matter of fact, its ordinary advances (apart from Government accounts) merely amounted last year to £18,657,922. That sum including loans to local governing bodies. It is evident from this that tho trading public is not receiving any great amount of consideration from the Commonwealth Bank, and, contrasted with similar advances made by tho Bank of New Zealand during its last financial year amounting to £32,716,166, such a result can only bo regarded as distinctly disappointing by the advocates of State banking in this country I am satisfied that wo can show better results under our existing method of doing business than w-e should be able to do with a State Bank in existence in Now Zealand. The Government received from tho Bank of New Zealand last year a total of £588,500 in the shape of taxation, and its share of tho bank’s profits. Tho Commonwealth bank contributes nothing to the

taxation revenue of the Commonwealth or the State Governments, and I believe it is even -exempt from local rates. So far tho Federal Government of Australia has not received a penny in ihe shape of revenue from this bank, thing exceptional if mated with good mares.