PEOPLE'S SAVINGS

New Zealand Herald, Volume LXXV, Issue 23059, 9 June 1938, Page 16

PEOPLE'S SAVINGS

POST OFFICE ACCOUNTS THE DECREASE IN 1932-33 A REPLY TO MR. HAMILTON [ny TELEGRAPH—PRESS association] DUNEDIN, Wednesday Tho contention that figures quoted by the Leader 1 of the Opposition, the Hoik A. Hamilton, in reply to the Prime Minister, the Rt. Hon. M. J. Savage, concerning the closing of Post Office Savings Bank accounts between 1931 and 1933, were based on a Ministerial statement issued by the Hon. R. Masters, was made by the PostmasterGeneral, the Hon. F. Jones, when addressing a meeting in the South ])unedin Town Hall to-night. Mr. Jones added that Mr. Hamilton was certainly not right in stating that during that period the number of accounts did not drop at all. "By costly advertisements in newspapers and in other ways the Leader of the Opposition is endeavouring to make a great deal of capital out of an address delivered last Easter by. the Prime Minister," Mr. Jones said.-"Mr. Savage said that in the two years 1931 to 1933 savings bank withdrawals exceeded deposits by well over £8,700,000 and that nearly 81,000 accounts were closed. ■-

Minister's Figures "Mr. Hamilton has made the charge that this statement is a half-truth, constituting a deliberate misrepresentation on the part of Mr. Savage. In support of this assertion, Sir. Hamilton states that during that period the number of real accounts did not drop at all and that the apparent drop was due to the closing of 80.000 dead accounts in the year 1932-33. Neither of his statements is correct. What are the facts? "The number of accounts closed in 1932-33, the particular year under discussion, was 152,531, an abnormally large number, which was accounted for not only by the exigencies of the depression and normal closing, but also owing to the fact that 67,485 dead accounts were closed. It should be noted that the number of dead accounts was 67,485, not 80,000, as stated by Mr. Hamilton.

Year Book Explanation "It is a curious coincidence," said tho Minister, "that the explanation in tho Yeir Book, upon which Mr. Hamilton is relying, concerning this drop did not appear until the 1936 issue, which was prepared and printed during the latter part of the election year 1935. It does not appear in either tho 1934 or 1935 Year Book, nor yet in the Abstract of Statistics,. which was tho source of tho Prime Minister's figures. An investigation of the origin of this explanation shows that tho incorrect figure of 80,000 was based on a Ministerial statement issued by tho Hon. R. Masters and used by the Nationalists in November, 1935, to hido tho truo position that an actual decrease had taken place. . "Moreover, Mr. Hamilton is" certainly incorrect when he states that the number of accounts did not drop at all in the year 1932-33. The net reduction in the number of accounts was 79,993, and after accounting for the 67,485 taken out under the Finance Act there was still a reduction of 12,508. I challenge' anyone to prove that this reduction was not due to the fact that cuts all round had forced people to draw upon their savings.

Decrease in Orodits

"Mr. Hamilton does not, however, challenge the fact of even more importance made by Mr. Savage in his address, namely, that between 1931 and 1933 the excess of withdrawals over deposits was £8,700,000," continued Mr. Jones. "The amount transferred to the Consolidated Fund from the dead accounts was only £66,449. Even after taking this comparatively small sum into consideration, the net decrease to the credit or depositors was. therefore, over £8.000,000. It cannot be denied that both the number of depositors I and individual accounts had enormously decreased. . "An examination of the Post Office Savings Bank figures show that under the Labour Government the number of accounts has increased by no less than 80,134, while the amount standing to the credit of depositors has increased by £10.229.813 to the unprecedented total of £63,145,165. Surely these figures amply disprove the allegation that the Government discourages thrift. Never before has the average amount standing to the credit of each open account been so high-as it was at March 31 last, when the figure was £6B 9s 4d."

MB. SAVAGE MISINFORMED FIGURES NOT COMPLETE [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON. Wednesday Stating that he had been misinformed, tho Prime Minister, the Kt. Hon. M. J. Snvage, in an interview to-day, referred to statements that had been made by him in regard to 80,000 Post Office Savings Bank accounts that had been written off, and to the reply made by tho Hon. A. Hamilton.

"Mr. Hamilton has charged me with misrepresentation," said Mr. Savage. "I want to say the figures that were given me were capable of conveying a wrong impression, and I have asked the Postmaster-General to mako a complete statement covering the period concerned. That statement will be made at Duncdin to-night, and if the newspapers give the same publicity to that statement as they have to 'Mr. Hamilton's statements everybody tvill know what the real position is." Mr. Savage added that the figures given him did not cover the whole situation. They were Mlf-truths, and for tho simple reason that they did not cover the whole truth he regretted it.