NO REASON FOR RUNS

Grey River Argus, 4 May 1931, Page 5

NO REASON FOR RUNS

SAVINGS BANKS SOLID Convincing Address BY SIR ROBERT GIBSON. OVER THE AIR. (Aus. & N.Z. Cable Assn.) (Received May 3 at 7 p.m.) SYDNEY, May 2. Sir Robert Gibson, the Chairman of the Commonwealth Bank, is to broadcast a talk on banking affairs and on the Australian finances to-night. It is expected that he will do his best to reassure the depositors. THE ADDRESS. BY’ RADIO. Sir Robert Gibson in his broadcast speech said that the New South Wales Savings Bank was quite solvent, and the run was due to the timidity or nervousness of the depositors. The money* deposited had naturally to be invested by the N.S.W*. Bank to earn interest for the depositors, and therefore . it cou’-d not at short notice be realised by the Bank and paid out. It was because of this fact alone that, after the run. the arrangement had been made with his Bank. There was no danger to the deposits. As for the Commonwealth Bank, it was in the strongest position. There was absolutely no fea r over it outside New’ South Wales. It was the safest of banks. He had no hesitation i n telling the people who wanted their money in a safe place to keep it in the Commonwealth Bank. A lot of

people had been timid in regard to the N.S.W. institution, and that was why he spoke to give most people a reassurance. The timidity had led to rumours that the Commonwealth Bank was unsafe, and even that it would close down. This was quitq. untrue. It was absolutely ridiculous to say this. To anyone who was of opinion that other banks were safer, he would say let. them take out their money from the Commonwealth Bank and put it where, they liked. It would be paid out to them. Sir Robert remarked that he had discovered that it is not the old customers of the Commonwealth Bank who have taken money out. It was those nervous people who just had taken their money from the N.S.W. Savings Bank and put it in his bank. Foolishly they put it in and then withdrew it. It meant for the staff. They did not want such depositors at all. Let them go elsewhere! They were only making others timid and overworking the staff. “I say to the nervour customer, ’ ’ he declared, “the bank does not want your money!’’ wanted sensible customers who realised that their money is just as safe in the Commonwealth Bank a* if they had the notes in their hands. He lipd Prime Minister Scullin’s authority to say the Government would back up the Bank in everything it did. His Bank was simply giving reasonable assistance to the N.S.W. Bank. The Commonwealth Bank Board would de nothing to jeopardise the safety of those whose money it had on trust. They would see that all depositors were fully protected, and so would the Government. The Board appreciated the confidence of Australians generhlly. He would say to the customers not to allow themselves to be confused or intimidated. The Commonwealth Bank could meet any and every

demand that could be made on it. It will never close its doors as long as the Australian nation stands. SLUMP IN IMPORTS. CUSTOMS REVENUE DROP. (Aus. & N.Z. Cable Assn.) CANBERRA, May 2. Customs revenue received by the Commonwealth in the last ten months was nearly thirteen million pounds less than in the corresponding period last year. The figures are £24,082,113 and £37,017,672 respectively.