REDUCTION URGED.

Manawatu Standard, Volume XLVIII, Issue 134, 7 May 1928, Page 6

REDUCTION URGED.

BANK OVERDRAFT RATES

‘‘OVEIITRADING CHECKED.’

COMAIERCE LEADERS’ APPEAL

WELLINGTON, May 4. 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 the association last addressed you on the subject of interest rates the figures of tho March quarter were not nvailable. Having since been made public, they afforded ample proof of the easier monetary condition of ilm Dominion. If figures were available relative to deposits and advances of tho banks to-day would they not disclose a position even better than that shown by tho figures of the March quarter ? The trade figures for the year ended March 31 also are evidence that, for the time being, at least, a check ha* been given to overtrading. “In the circumstances my executive is of tho opinion that the Associated Banks should reduce the rate* charged for advances on overdraft at least by the extent of the increase of i pc:' cent made in May. last. If it is no*, expedient to make the reduction to apply immediately, at least an announcement could bo take effect, say, on June 1.

“The rates charged by the Associates Banks are not only accepted as an index _of the conditions within the Do minion, and govern rates of financin operations such as loans on mortgage but they largely ‘set the pace’ of dew lopment in both the primary and th< secondary industries. No evidence o returned confidence would be more sig nificant than the decision which w< again asked the Associated Banks tmake without delay.”