A STATE BANK.

Lyttelton Times, Volume XCIV, Issue 10707, 17 July 1895, Page 4

A STATE BANK.

The State Advances Bill prepared by the Treasurer o£ South Australia is a much more ambitious measure than the Advances to Settlers Act now in operation in this colony. It provides, practically, for the institution of a State bank, which, besides absorbing the business and funds of the present Savings Bank, will enjoy the exclusive right of issuing notes. There are, however, restrictions to be p|scedupon.the iterations ofiihebank

which mutt prore a very serious handicap in the development of its business. Its advances on landed securities are not to exceed one-half of the unimproved value, and its total investments are not to exceed £3,000,000. If the first condition should be strictly enforced there will be very little difficulty in observing the second. The man who requires an advance equal to only one-half of the unimproved value of his property can very well dispense with the assistance of a State bank. It is not easy, either, to understand why the promoters of the institution should wish to place a limit upon the safest and most profitable part of its business. If the people of South Australia are really ready for this interesting experiment it would be unwise to imperil its prospect of success by imposing unnecessary restrictions. A bank starting with a large deposit business, and strengthened by a State guarantee and the privilege of issuing notes, will be expected to do something more than assist those independent landowners who care to transfer their accounts from the private moneylenders.