P.O. SAVINGS BANK

Northern Advocate, 14 June 1929, Page 5

P.O. SAVINGS BANK

WITHDRAWALS BY CHEQUE SERIOUS OBJECTIONS. REQUEST DECLINED. (Special to “Northern Advocate.”) AUCKLAND, This Day. A request that provision be made foi Post Office Savings Bank accounts to be operated upon by cheque, has been declined by the Hon. J. B. Donald, Postmaster-General. The proposal was recently made to Mr Donald by a deputation from the Auckland Provincial District Conference- of Friendly Societies, Explainjngl the serious objections in the way of acceding to the request, Mr Donald says: “The primary object of the Post Office Savings Bank is not to provide facilities for the easy withdrawal of moneys, but to encourage thrift. To provide for withdrawals by cheque would involve v complete alteration of the present system, the fundamental conditions of which is that the deposit book must be presented for making therein, at time of payment, of the necessary entry of withdrawals. “If arrangements were made under which cheques could be drawn on the Post Office Savings Bank, the character of the bank would be immediately changed and the bank would be brought into competition with commercial banks. Moreover, the expense of (management would be largely increased. “The system of withdrawal by cheque could not be confined to any one section of .depositors and it is estimated the expense of applying sue;! system generally would be so groat, that it could be arranged only by making an annual charge, ns is done by commercial banks, or by reducing the rate of interest paid to depositors. “In connection with the reference, at the interview, to the system of operating post office savings bank accounts by mdans of cheques, stated to be in operation on the West Coast, it is understood that a private savings bank, at Hokitika, permits its depositors to make withdrawals by means of cheques and it is this bank, no doubt, the members of the had in mind.”