THE SAVINGS BANK.

New Zealand Herald, Volume LXVI, Issue 20239, 26 April 1929, Page 12

THE SAVINGS BANK.

Of the five trustee savings banks in New Zealand, the Auckland institution is the oldest by a few years and the largest by a very substantial margin. In the chairman's review of its activities during the past year, the outstanding fact is the increase of £500,000 in the amount at the credit of depositors. That must constitute a record in the bank's* history. It is indeed notable that during recent years, when adversity and temptations to extravagance have pressed hardly upon the thrifty, the customers of the bank have annually succeeded in" adding to their credit balances, apart from the substantial increment of interest. A summary of the bank's accounts for the last five years illustrates the manner in which the effort to save has been both extended and justified. In 1925, tho bank had 88,000 depositors on whose behalf it held over £4,000,000; three years later the total deposits had passed the £5,000,000 mark; now, with 138,000 depositors, there is little doubt that the sixth million will be accumulated by the end of this year. The large increase in the number of depositors is chiefly due to the recent developments of thrift clubs and school banks, an extension of the bank's activities that is sufficiently commended by the fact that in three years it has introduced 9000 children to the habit of saving, and enabled them to set aside casual pence to the extent of £12,765. By its use of tho funds (intrusted to it, or at least of the major part of them, the bank pursues its policy of encouraging thrift. Over 44 per cent, of its total funds arc invested in mortgages on terms which both stimulate Und facilitate efforts by tho borrowers to discharge their debts. From their point of view, the year was marked by tho reduction in the rate of interest, by which the bank proved both its consideration of public interest and its independence of policy. Its directors no doubt had good reason for the more conservative policy lately practised in regard to mortgage investments —in the last year, tho amount advanced on such securities was barely equal to the purchases of State and municipal debentures—but it may be hoped that, while observing necessary caution, they will in future strive especially to supply the needs of farmers and home-builders rather than those of local government authorities who have access to a wider field of capital.