BANKING POLICY

New Zealand Herald, Volume LXXII, Issue 22149, 1 July 1935, Page 6

BANKING POLICY

UNJUST CRITICISM DANGER OF POLITICAL CONTROL •'Because of their inside knowledge, staffs of bank:} know that the allegations of harsh treatment of the community made against the hanks are unjust and would not be voiced if those who made the charges were aware of the actual facts." This statement was made by Mr. V. C. S. Edwards, president of the K:nv Zealand Bank Officers' Guild, proposting the toast of the banks at a soc : al gathering in Wellington to entertain delegates to the annual conference of the guild, "Indeed, in many cases, and of course when circumstances warranted it, the banks have shown every consideration and leniency toward their customer!;, who are passing through times of financial distress," continued Mr. Edwards. "The banks realise that it is i:n the public's interest, as well as their own, that this should be done. It is only common sense to realise that the banks can prosper only as the community prospers, and this should be a sufficient answer to those who claim that the banks seek only their own interests. "Up to the present the bankers, have been able to cope successfully with the problems (mf.ny of them of unusual complexity) with which they have been faced. A new problem, however, seems to be looming—this time on the political horizon. There is a movement afoot to interfere with, and to introduce radical changes in our banking system which has stood the test so well. "You doubtless know that the proposal is/to place our established system under the control of politicians. You are well aware of the potential dangers that would inevitably follow from such a course of action, and the public, who would probably be the principal sufferers, would be well advised to ponder and think deeply before sanctioning at the polls such a radical change in our well-tried system. An experiment in this matter would be fraught with risk and danger. "It has bsen well said that good banking is produced, not by good laws, but by good bankers. The truth of this statement is exemplified in the case of our own banks, whose stability, strength and continued success are all attributable to' the wise guidance and ability of former bankers, and to the same qualities shown by those who now occupy the highest executive positions in their relative banks "