BANK RATES

Hawera Star, Volume XLVII, 3 May 1928, Page 9

BANK RATES

REDUCTION ASKED FOR. IMPROVED POSITION IN DOMINION. [BY TELEGRAPH—PRESS ASSOCIATION.] WELLINGTON, May 3. The following letter has been addressed by the president of the Associated Chambers of Commerce of New Zealand (Mr. D. J. McGowan) to the chairman of the Associated Banks:— “WHen tihe association, last, addressed: you on the subject of interest rates, the figures of the March quarter were not available. Having since been made public, they afforded ample proof of the easier monetary condition of the Dominion. If figures were available relative to the deposits and advances of the banks to-day, would they not disclose a position even better than that shown by the figures of the March quarter averages? Trade figures for the year ended March 31 are also evidence that for the time being at lea.st a. check has been given to overtrading. In the circumstances, my executive is of the opinion that the Association Banks should reduce the rales charged for advances on overdraft at least by the extent ,of a half per cent made in May last. If it were not expedient to make the reduction to apply immediately, at least the announcement could be made to take effect, say, on June 1. “The rates charged: by the Associated: Bank's are not only accepted as an index of conditions: within the Dominion and govern rates of financial operations, such as loans on mortgages, hut largely ‘set the pace’ of development in both primary and secondary industries. No evidence of returned confidence would be more significant than the decision which we again ask the Associated Banks’ to make without delay.”