World's Building Societies

Manawatu Times, Volume LIV, Issue 7211, 18 July 1933, Page 3

World's Building Societies

INTERNATIONAL CONGRESS FEILDING REPRESENTED English mail to hand contains special references to the International Conference of Building Societies, which was held in London early last month and at which Mr Edmund Goodbchere, manager of the Feilding Building Society, represented the building society interests of New Zealand. On the opening day Mr Goodbchcre attended the “At homo’’ given by Sir Harold and Lady Belman at Finchley, Loudon, where the overseas delegates met the conference executive as well as the Prime Minister, Mr Ramsay MacDonald. Many interesting facts and figures relating to the activities of the building societies throughout the world were made available to the conference delegates, not the least being the estimate that there are at least 20,000,000 members in building societies throughout the world, while the assets of the societies aggregate £2,500,000,000. Reference was made to the position in New Zealand. Long before this country was taken under tho wing of Great Britain building societies were established and recognised by law in England and the c-arly British settlers to New Zealand took with them a knowledge of building society practice, from which they profited immediately by the setting up of similar organisatoins hero. To-day New Zealand, with her population of one and a half million, is served by 94 societies, 51 of which are of the permanent, type and 43 terminating. The two points of interest to English concerns in the law governing the societies in New Zealand are that tho advancing of money on second, mortgage and the granting of loans hv ballot, are not prohibited. The total assets of the New Zealand societies aro £9,000,000,. including mortgage assets of £8,500,000 and there are 61,000 investing members and 18,000 borrow members.

Writing- in the Daily Telegraph Building Societies Supplement, Mr John E. Hibbett, accountant, of the Halifax Building Society, says that tho Government of New Zealand created an innovation in building society legislation in June, 1032, by passing an Act which decreed the rate of interest the societies were to allow to investors and depositors. Tho maximum interest on deposits is 3J per cent., but 3 per cent, to 44 per cent, maybe allowed on fixed deposits according to tho period of deposit. Tho Government of the Dominion, ho stated, is a serious competitor of the building societies, for in tho last 26 years the State Advances Department has advanced on mortgage of workers’ homes over £21,000,000. The Halifax Building Society is stated to be tho largest in tho world, having 360 branches throughout the United Kingdom. The statement oi accounts for the 80th year ended July last showed total assets £88,675,000, reserve funds £3,015,000, and mortgage assets £64,606,000. Competition by tho State with the activities of building societies is referred to by Sir Enoch Hill, president of the Halifax Society, who suggests that there is need for more co-opera-tion as against separate activities toward the same end—tho encouragement of thrift which engendered good citizenship. “Thrift, however, by itself requires some definition, ’’ stated Sir Enoch, “and in view of the recent economic discussions on this matter, probably the best definition is ‘wiso saving for wise spending.’” In this direction the building societies have a very special experience for the aim of the saving they promote is well known to everyone. Their ultimate aim is to see every citizen tho owner of his own home, a statement whicn shows in itself the extent of tho field they have to cover. The combination of those two items in one organisation is unique in finance and merits much more attention than is usually paid to it.”

Discussing State activity in the provision of homes for the people, Sir Enoch stated that the subsidies provided by the State very largely went to the wrong people, and the com- ( paratively high cost at which this State housing was being conducted had very unfortunate repercussions. The dead-weight burden of debt became increasingly heavy, and further, tho State insisted on helping people who could have helped themselves—people who coiild have used the building societies but for the taxation they were obliged to shoulder to pay for tho States’ housing scheme. State competition in New Zealand has been a matter which has given the local building societies reason for thought along lines as to whether this State activity has been in the best interests of the country. Thero would appear to be need for more co-opera-tion between the State and building societies in serving tho common end both are out to achieve.