"FROZEN" DEPOSITS

New Zealand Herald, Volume LXX, Issue 21514, 10 June 1933, Page 12

"FROZEN" DEPOSITS

Sir, —In your report of the deputation which waited on the Kight Hon. J. G. Contes on Tuesday, 1 was much surprised to sec that Mr. C. F. Bennett expressed the opinion that the greater proportion ci' the money lodged with the banks in New Zealand on fixed deposit is "frozen." After the oubhcation from time to time of the quarterly returns concerning deposits and advances, one sometimes hears irresponsible people who have no knowledge cf the subject say that the large sums of money in the banks should be made available to meet present needs. Such remarks, from such sources, can be overlooked, as they carry no weight, but when a leading citizen popularly believed to have knowledge of finance makes such misleading statements the actual facts should be supplied in the public interest. The last quarterly statement shows that the fixed deposits amounted to £35,208,988, the current account deposits to £17.461,232, and the advances to £18.500,274. so it may be seen that the whole of the money held on fixed deposit is lent out, and all but £4.169.996 of that held on current account, so •where is the "frozen" money? It would not be possible for the banks to provide £10.000,000 from New Zealand deposits without calling in manv of the present advances and thus causing widespread ruin and distress. Persons whose opinions are likely to be accepted without question by people ignorant of the facts should be careful when making assertions likely to add to the prevalent unrest. Ex-Baxkeb.