RURAL BANK

New Zealand Times, Volume XLVII, Issue 10886, 28 April 1921, Page 6

RURAL BANK

FIRST DAY’S OPERATIONS. SCHEME EXPLAINED. The primary producers of New South Wales now have their own bank—an institution from which the loans will be entirely restricted to the man on the land. The Rural Bank opened its doors last week at fifteen branches of the State Savings Bank. From the first few hours’ business of such a scheme little information can be gleaned as to its future, success. But the controlling authorities were highly satisfied. Many inquiries were made, and at the Barrack stret office, at least, a number of accounts were opened. The Rural Bank is virtually, as far as the depositor is concerned, an ordinary trading bank. Backed by the State Government, it runs current accounts and fixed deposits. In one respect it goes a little farther, in establishing the somewhat novel ‘‘d eposit stock” .system. This is virtually a compromise between the current account, with its money at immediate call, and the fixed deposit, withdrawable only at the end of the term fixed. By taking “deposit stock” the depositor places his money at the disposal of the bank for no definite period, but to withdraw it he has to give certain notice, varying with the amount in question. The bank does not cater for any one class of trading bank depositors. It offers the same facilities as other banks. But it to a certain extent looks to the primary producer, and the man who makes his money in connection with the agricultural industry, to support the institution. As soon as the reserves are properly provided for, money becomes available for loans—to primary producers only. Naturally, the greater the business of the bank with depositors, the sooner and to the greater extent will it be able to assist the farmer in hie time of need. v The Rural Bauk is self-contained. It is run, as Is that in Victoria, by the Government Savings Bank; but as far as its funds are concerned it is a watertight compartment. Upon its success as a trading bank depends its success as a lending institution. S'o far fifteen branches of the State Savings Bank have been equipped to conduct the Rural Bank. The principal office,is in Barrack street, as the head office of the Savings Bank in Martin place is already taxed to its utmost to deal with its ordinary business, and it cannot accommodate a Rural Bank office. But within a few weeks most of the branches of the State Savings Bank will also be Rural Bank offices. The officials of the Rural Bank are satisfied with the day’s operations, and are sanguine of the future. But their optimism was as nothing compared with that of several people who, saying they were primary producers, applied for loans from the Rural . Bank about an hour and a half after it had come into existence.