INTEREST RATES

Hawera Star, Volume XLVIII, 17 September 1924, Page 5

INTEREST RATES

COMPETITION AGAINST BANKS.

PUBLIC TRUSTEE’S INTERESTS,

(By Telegraph.— Special to the Star.) WELLINGTON, Sept. 16. When the Prime Minister put the Public Trust report on the table today the Hon. J. A. Hanan asked if it was true that the banks were endeavouring to bring pressure on the Government with a view to preventing' the Public Trust Office taking money on deposit. Mr. Massey said he had received a newspaper cutting dealing with the matter. It was not quite correct, although there was something in it. He was trying to keep down the price of money and was opposed to anything keeping the price up. He had had to interfere with the heads of certain departments, who were inclined in that direction. There was no trouble so far as he was aware, and there had been no direct interference between the banks and the Public Trust. He had received a communication from the banks six or eight weeks ago. The Hon. J. A. Hanan: Do they object to the Public Trust’s operations? Mr. Massey said the complaint was that, the Public Trustee was coming into unfair competition with the banks and was paying more for money than the banks, and therefore it ivas impossible for the banks to reduce the rate of interest.

Mr. Wilford: Do they refer to liar hour boards?

Mr. Massey said there was no complaint that the harbour boards were talcing deposits, but there was a complaint that the harbour boards -were making deposits to the Public Trustee. Thelion. J. A. Hanan: Surely the banks do not want a monopoly. Mr. Massey: No, but they want to keep the price of money down. There is nothing serious in what has happeued.

AMUSEMENT TAN EXEMPTION. One clause is contained in an amendment to the Amusement Tax Act introduced by Governor’s message to-day. It will exempt from taxation . all tickets, where the price for admission does not exceed two shillings.