REFORM CANDIDATE.

New Zealand Herald, Volume LXVII, Issue 20556, 6 May 1930, Page 13

REFORM CANDIDATE.

SAVINGS BANK DEPOSITS.

REPLIES TO LABOUR LEADER. REASONS FOR THE CHANGE. Tho largest meeting in tho Parnell byelection campaign was addressed by Mr. W. P. Endean, Reform candidate, at tho Tudor Theatre, Remuara, last evening. Many could not gain admittance. Tho Leader of tho Opposition, tho Rt. Hon. J. G. Coafcs, and several other Reform members of Parliament, were on The platform. Mr. T. N. Baxter presided. A reply to tho Leader of tho Labour Party, Mr. IT. E. Holland, regarding tho Post Oflico Savings Rank, was made by Mr. Endean. Mr. Holland had alleged that tho Reform Party had driven somo millions of money into tho hands of tho private banks by reducing tho maximum amount of deposits. "What are tho facts?"' asked Mr. Endean. " Previously tho Post Oflico Savings Bank accepted deposits up to £SOOO, and paid interest thereon. Tho money was. of course, at call. It was used largely by solicitors and financial agents, to whom it was a godsend to bo able to put aside money foY a few weeks only, at call, and receive 4 per cent, interest on it. Tho Post Office Savings Bank was much embarrassed by having this uso made of tho bank, a uso never intended. It meant that these large deposits—being at call and put in for only a few days or weeks at a time—could not be reinvested by the Post Office; and yet it had to pay interest on them.

"Tho point was reached where the Post Office had either to cut out these large temporary deposits, or else reduce the rate of interest for small depositors. Tho Reform Government considered that the purpose of tho Post Office Savings Bank was to provide facilities for tho small depositor, and that they should not bo sacrificed in tho interests of the lawyers and others who were making a temporary convenience of tho institution. The Reform Government, therefore, reduced tho maximum from £SOOO to £2OOO. Mr. Holland attacks Reform for having done this. Either he cannot know the facts, or else lie is misleading tho people as to the position. It is a gross and shameful piece of political misrepresentation of a perfectly straightforward and dosirable change."

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