INCONVERTIBLE NOTES.

Lyttelton Times, Volume CXVI, Issue 14191, 13 October 1906, Page 12

INCONVERTIBLE NOTES.

TO THE EDITOR. Sir,— Having been away from home. I did not see the Lyttelton Times” of Thursday till Monday. I fancy your reporter is mistaken in saying that the banks denied refusing to pay gold, because in the “Press” it merely states that- “ the Government has no knowledge of any refusal of any bank in New Zealand to pay gold.” There are none so blind as those who won’t see, and there are a good many things that the Government does not want to see, I wrote to the papers stating that it had come to my knowledge that a Christchurch bank had refused, not long, before, to pay £IOO (part of a cheque) in gold, saying that if the gentleman wanted gold he must go_ to Wellington for it. A neighbour, reading this letter, told me that on his return from South Africa tho Bank of Now Zealand refused to pay his cheque of £2O odd in gold, saying they didn’t give gold. This is a fine return to the man who goes to Africa to fight, from the bank which got a Government guarantee of over five millions (over six pounds per head of tho population!). If my charges were not true why did not tho banks reply? I do not give the name -of the other bank because I am not certain which it was. If the banks deny the truth of what I say by. a letter in the “ Times,” I will prove it. 1 have no doubt, as these two

examples came to my knowledge quite unsought. There are plenty of other people who could testily to a similar experience. I believe that Mr Ell himself once said in the House that he had been refused gold by a bank in Wellington. Your reporter states that, “as a matter of fact, any branch bank may refer a demand for gold to the head office.” In Mr Ell’s case I suppose that would have been at Dunedin or Auckland. If the banks have got four millions of coin I cannot understand why they should hesitate to pay an odd twenty or hundred pounds to anyone. But they did. Under these circumstances, I. should like to know what evidence we have that they have got four millions of coin. It is a ridiculous and wasteful amount of coin in a colony of Jess than a million of people—remembering that there is also a large quantity in circulation. .That is because there are five times too many banks. I suppose it has pot come to the knowledge of the Government yet that, according to last March bank returns the total liabilities within the colony of the five banks are half a million greater than their total assets within the colony. I would suggest to Mr Ell that it would be an interesting return to get, the amount of bank notes destroyed or lost while in circulation, which is all so much profit to the banks.—l am, etc., J. MILES VERRALL.