“QUITE UNWARRANTED”

New Zealand Times, Volume XLVII, Issue 10964, 28 July 1921, Page 2

“QUITE UNWARRANTED”

BANKS RESENT CRITICISM BANKERS REFUTE MR ALLEGATIONS. "HAVE HONE ALE WE CAN." A prominent banker, on being interviewed My a “Times” representative yesterday, in regard to the criticism by the president of the Farmers' Union conference (Mr G. W. Leadley) of the profits made by banks in K«w Zealand, said that he thought it would he generally recognised that no matter how careful the banks might be dn the conduct of their business, to-day they could hardly hope to escape loss if the present financial stringency continued, any length of time —and it showed no signs of an early termination. '‘Contingencies must be provided for (he added) in view of the losses which undoubtedly will occur if the monetary shortage lasted 10* a lengthy period. We a-lready know of cases in which application has been made by mortgagees for time for the payment of their interest already* accrued; and this in most cases has been can ceded, altogether from the assistance rendered, by the banks and all classes of lenders. i DOING ADD THEY CAN. "Whether private lenders, or banks, or other financial institutions, they are (he claimed) doing all they possibly can to tide farmers, business men, and others over this critical period. Of course, 1 think it is generally conceded by all who know the banking situation that the .banks have already done all they can to assist all classes of the community in carrying on; so that these criticisms on the part of Mr Xeadle.y and those who followed him are quite unwarranted by the facts. As to the rates of interest that are being charged by the banka and other lending institutions at the present time, it must be remembered that these rates are only on the parity of the interest that is ruling in other parts 'of the world; end, surely, the farmer ham-, self will also contend for the same principle in regard to the realisation of his produce. Indeed, he has already done so in the case of butter. He claimed last year that he, should be paid in New Zealand* for hie butter on a parity with the prices ruling at Home, when they were in the neighbourhood of 280 s f.o.b. "NOT TURNED DOWN A SINGLE PRODUCER-CTJ STOMER / '

".Speaking for our own bank," he continued, "I can say that we have net" •'turned down' a single producer-customer who has come to us for an advance; but we had, of course, to husband M>ur resources; therefore, when farmers who load been unsuccessful in obtaining assistance from their own banks came to us, we were bound to consider our own customers first. Mr Deadley's private opinion does not matter verv much when compared with the expression of his views as president of such an important body a 9 the Farmers' Union. Naturally, greater weight will be given to his remarks uttered before that body; they will have something like an official importance imparted to them, because they will be regarded as well-considered before being given expression to. But I have no hesitation whatever in describing them as uncalledfor and unjust. After giving Mr Deadley due credit for honest and sincere motives in speaking ag he did, it is clear that he did not know what he'was talking about in criticising the banks' profits, and the dividends paid. Banks must look well ahead, far ahead, and liberally provide whenever the opportunity offers far all contingencies, and that is what the bank I am connected with is doing, as I xinderst&nd the position. On Mr Leadley's remarks on State banking I have nothing to say, except, looking at w'hat the banks con- ; tribute by way of taxation, and at the j manner in which they have stood by j their customers, producers, and traders, jin a time of unparalleled anxiety and ; stress, the State has done very well out !of the bank& in the matters of both revenue and service to the- public. They certainly do not deserve the remarks made by Mr Leadley."