Getting Things Done.

Northland Age, Volume 28, Issue 64, 29 August 1928, Page 7

Getting Things Done.

For Th 3 Banks,

There is a cry for money at a cheaper rate of interest than that ruling at present and the people naturally look to the Government of the country to bring about a reduction in the interest rate whenever possible. Their action in the past has been such that they have allowed the rate of interest to rise without as much as raising a voice in protest. This matter was mentioned in Parliament recently by Mr bayage who said ; —“I will give a bit of history as an introduction to further remarks that I have to make. It is ancient history now that the reformers were returned by a record majority in November, 1925. In December of the same year the interest on loans from the State Advances Department was increased from 4V2 to 524 per cent. On 18th June, 1926, the chairman of the Bank of New Zealand attacked the Government for paying 3/i per cent on Post Office Saving bank deposits up to £5,000. In April, 1927, the restriction of loans to settlers and workers through the State Advances Department was gradually intensified. On 9ih May, 1927, the private banks announced that overdraft rates would be increased from 6% to 7 per cent. There seems to be some sort of relationship there —State Advances Department restricting loans, private banks increasing overdraft rates. On 17th June, 1927, the acting chairman of the Bank of New Zealand again attacked the Government for paying interest on Post Office Savings-bank deposits up to £5,000. On 24th November, 1927, the present Minister of Finance took power by Act of Parliament to amend the rate of interest payable on Post Office Savings-bank deposits, and subsequently reduced the amount upon which interest would be paid from £5,000 to £2,000