BANKS’ BULLETIN.

Manawatu Standard, Volume LV, Issue 256, 26 September 1935, Page 6

BANKS’ BULLETIN.

(To the Editor.)

Sir, —Mr Ernest Petty, criticising the banks’ bulletin No. 1, states in the “Standard”“Herein the Associated Banks strive to save their faces after forcing a six years’ depression upon us,” and later on asks: "How can the banks justify their policy when they have had the money, and we have had the goods?” These two statements taken together indicate the type of man which clings to an idea in tlio face of ascertainable facts, 'lbe published figures reveal:—(l) That prices fell overseas in 1928, and that our export income fell heavily during 1929, and that bank advances instead of being contracted were actually increased right up to 1930. (2) That bank advances were maintained at a high ratio and did not recede to tho 1929 level untd the end of 1933,

The contention that bank credit was contracted to bring about the slump is simply untrue, and 1 hope that All’ Petty will lay aside his spleen and acknowledge the fact that the banks supported the Dominion with extended credit until the uplift in trade occurred in 1934. Instead of a bankmade slump, the banks supported the community and prevented the full effects of the depression being felt in this Dominion.—l am etc., MERCATOR.