INTEREST ON OVERDRAFTS.

New Zealand Herald, Volume LXV, Issue 19889, 7 March 1928, Page 10

INTEREST ON OVERDRAFTS.

REDUCTION IN RATE SOUGHT.

MOVE BY BUSINESS MEN.

[BY TELEGRAPH. —OWN CORRESPONDENT. ] CHRIBTCHURCH, Tuesday.

In view of the fact thai the recent downward trend of the trade of the Dominion has been halted, the council of the Canterbury Chamber of Commerce decided last night to ask the banks to reduce their overdraft rates. This was the outcome of the following motion proposed by Mr. Norton Francis, and seconded by Mr. H. S. E. Turner: "That this council approach the chairman of the Associated Banks with a request that as the adverse course of the trade of tbhe Dominion has been checked the banks consider favourably the reduction of their overdraft rates, as from April 1 next, to those in force prior to May 9 last, and that all the other New Zealand chambers be notified of the action taken, and asked to consider the advisability of supporting this application,"

Mr. Norton Francis said the banks had waited some time before putting up the rate in May last, because they knew that the course was a difficult and an unpopular one. The banks were now in » different position, and it was quite possible that they would find that it would upset their finances to some extent to give tha request of the chamber an immediate reply. Bankers as a whole, however, would find business more profitable when the overdraft rate was low than when it was high. It might be difficult for the banks to accede to the request at the present time, because of the raised rates on deposits, which could probably not be decreased without ample notice.

The president, Mr. C. P. Agar, said fortunately the position was changing rapidly this year to a favourable one, and if the higher rate could now be reduced it would restore confidence to the community as a whole.