SAVINGS BANKS' PROFITS.

New Zealand Herald, Volume LXIV, Issue 19691, 18 July 1927, Page 8

SAVINGS BANKS' PROFITS.

A suggestion made by the Minister of Finance, in the course of discussion on the second reading of the Savings Bank Amendment Bill, is to be viewed with serious misgiving. It refers to the disposal of the profits of these banks. Mr. Downie Stewart expressed his opinion that the profits should be devoted to national objects, and not as at present to local purposes. The principle he enunciated is open to grave objection. It may be noted that, by existing legislation, savings banks are authorised to donate half of their profits to certain institutions, mainly charitable and educational, and that it is now proposed to extend the scope of these benefactions to include any charitable organisation approved by the Governor-General in Council. This extension is unexceptionable, and will doubtless be welcomed by the trustees of the various savings banks, who would retain under it their right of choice as to the objects of their gifts. These objects

have hitherto been chosen subject to Government approval, and the amending provision merely enlarges the range of their initial choice. The effect of Mr. Stewart's suggestion, however, if given the force of law, would be to take away their choice, by proscribing local objects and limiting the benefiting institutions and organisations to those only that have a nation-wide character. His opinion has obvious reference to the Auckland Savings Bank. The other four are relatively small and would not be materially affected. The trustees of this bank, as is well known, have shown a thoughtful regard for local objects. From time to time they have made considerable contributions to these objects, strictly within the scope of the legislative provision, to the general benefit of citizens here. Since the amounts so donated have been the earnings of the investments of those citizens, this local benefit has been manifestly equitable. To insist that this benefit, made possible by these local investments of Auckland people, should be compulsorily nationalised, would be gravely unjust. It is of a piece with the too-frequent occurrence, as soon as there is any accumulation of moneys here for any purpose, of a demand elsewhere that they should be placed at the disposal of the whole Dominion. Auckland members of Parliament should clearly tell the Government that any attempt to give effect to the Minister's opinion will be keenly resented by citizens here.