Commonwealth Bank of Australia.

NZ Truth, Issue 407, 12 April 1913, Page 4

Commonwealth Bank of Australia.

This is the greatest Bank m Australasia. It was brought } n t o existence by the Democratic Federal Labor Government, which has the Hon. Andrew Fisher at its head as Prime Minister. "Cambist" is not blind to some of its deficiencies, which at this time of writing will be passed over; but m spite of these it is the greatest Bank m this quarter of the globe. Owing to its recent inception the public have not. so far. been much impressed by its Importance. Nevertheless, the time is rapidly coming when this will be made manifest. Up to the present, all the journals which write m the interests of the Associated Banks or Australia have used their hireling pens m hostile criticism. Their gullible unthinking readers have so far made no protest, but occasionally there is a slight murmur of disagreement with the journalistic piffle which has been ladled out. The average newspaper hack Is not. as a rule, a financial genius. He is at best a mere phrasemaker, endeavoring to impress people who cannot make phrases themselves. The cold, hard logic of economics rises up at times, and sweeps this work Into oblivion. How these short-sighted, mischievous persons have "fallen m" ! Two years ago the great boom m Australia was at its height, and (he financial scribes (save the mark) on the big dailies directed attention to the growth of the deposits and advances. They ridiculed the advent of the Commonwealth Bank, and chuckled with Joy at the prospect of the combined money trust and Associated Banks of Australia downing the great State institution at the first business clash they had. But this short-alghted prediction has been killed almost as soon as promulgated. Tho Associated Banks ] have received a nasty smack In the face. Their deposits have started to run away from them, and now they are without power to issue bank notes. This has hal a most sobering effect on the banking Guild, and It has fallen to the yapping . financial scribe to refrain from doling out

any more abuse of the national credit of the Australian Commonwealth. The jeremiads against the great Commonwealth Bank resolve themselves into nothing short of the degradation of the public's credit. If such a fool press is listened to, and believed m by the people, the wickedness of its. lies will inevitably cause .ruined credit, want of enterprise, unemployment, and the destruction of every form of property values. Now this is just • WHAT REALLY INTERESTS the individual, and it is from this central j point that all the wheels of industry ancl endeavor revolve. In othter words, the Importance of sound banking; principles affects every member of the community— the monied man, the laborer, the farmer, manufacturer and trader all feel the beneficent effects of wisely directed banking policy. They feel m greater degree, the set back which a rotten directioij of banking credit involves. The two which reveal themselves quickest are m these young countries— to be out of work first, and secondly to suddenly find a cherished property drop m value, and, m dropping,, perhaps spell, bankruptcy to the owner. The Banks m Australasia hayo for years done their best to put our people out of work. Their policy has been to foster the importer, fattening him, and carrying him through bad times and good with the people's deposits. When the times become very bad and the Banks have the choice of calling m the advance of an importer, or a sound farmer, or manufacturer, the importer generally gets the go by, while the true wealth producer has to pay up and look' 1 unpleasant. This is no fancy picture, for "Cambist" has ' been In the game, and knows what he is writing about. This : applies to the Dominion equally, with Australia. The comments on Australian banking m this column are written as pointers to guide our people m town and country. We should remember that a Bank-bolstered importer or middleman causes unemployment and destroys property values. , A radical change m bankIng policy is required. ' We shall have it enforced, either by outside influences or by such a terrible internal collapse as will open our eyes. At the present time the indications point to something outside. . We hays the Imperial Trade Commission, going through the Dominions. The gentlemen on that Commission have very quickly sized up New Zealand, and will just as quickly do. so with Australia. So far, they indicate that English , interests desire greater expansion m colonial exports, preferably m raw products. Great Britain desires to hold her manufacturing population, and requires ; the \ stuff to manufacture. The question naturally arises, will importers be used 1 by the manufacturers' trust of England as local distributors of British goods? This is feasible, and would no doubt be profitable to the colonial merchant. He is m ' that • position to a certain extent at present, but subject to some competition. The latter would be killed under the new order, and more firmly entrench the pre-' sent mercantile giants. The small indentor would be done away _ with, and force retailers- into the hands of merchants. The Democratic Federal Labor Government has been preparing for eventualities of this kind. It desires to build up and weld the national Australian spirit into economic power. It has put its hands to the banking and currency business of Australia. It has done nothing sinister to the present banking concerns, nor has it endeavored to* impose fresh or untried fads on the people m money matters. It ftas .cautious]}' felt its way and has, so far, achieved much. In the first place the note circulation cf the Commonwealth is double what it was m the days when the Banks had this public function as their own private monopoly. This increase m circulating money has been a great factor m the recent outburst of Australian prosperity. It is only m its infancy, but will grow. The note circulation m Australia is about 55s per head. In New Zealand a little more than 31.5 per head. When we get a Government fit to tackle this question we shall have our State note issue department, and "Cambist" predicts a rapid Increase of circulating money here/ too. The influence of the great Commonwealth Bank of Australia is now being felt m another direction, viz., the mass of the people have provided for them .a safe repository for their money. Here is what the great State Bank is offering m Its Savings Bank Department: It opens accounts for the people, using all Federal post offices as agents, including Papua; accepting deposits of Is and upwards on which interest is paid at the rate of 3 per cent, per annum, the' limit of such accounts being fixed at £300. This is a great inducement to thrift. Depositors m this class can withdraw sums up to £10 on demand at any post office. So that no unnecessary red tape is put, in the way' of small depositors" requirements. It is interesting to note just one week's work, viz., the week ending. March 22 last. Number of accounts opened, 1113. Amount of deposits made, £50,675. Withdrawals, £27,570. This shows an Increase of deposits or saved money amounting to £23,000 for the week In question. It Is indeed ,& splendid record. The great State Bank has to date 63,560 depositors on Us books with £1,940,433 at their credit earning 3 per cent, all the time. These same people had lodged £2.393, G5S and only withdrew 4M43.165. which goes to prove that thrift, and the unbounded confidence felt m dealing with Australia's great State Bank. This Bank Is unique m the British Dominions. The strength of it is m the fact that tlio whole population or . the Commonwealth are practically shareholders. Its success benefits all the people, not small coterie.-? of private monopolists or greedy dividend hunters. No private Institution is as safe. Us base is so firmly fixed, so widespread, that nothing can possibly Injure it, unless the whole Australian continent should beicomo obliterated. "Cambist" was shown this week o letter from, a merchant In Sydney, whose firm has branches m several Australian States and In British Columbia. He wrote: "The State Bank Is a Go«l-sentl to us. The Associated Banks wlil not meet our legitimate requirements. Many people 'are talking of transferring their accounts to the State, Hank. Money la very tight." It Is to bo hoped the Commonwealth Bank will ilrai extend Its aid to local wealth- producers. 1.c., farmers of every kind and manufacturers. It Is thi9' kind of policy which will check the over importation of foreign goods. It will a l 8 o help to build up national wealth, and. Incidentally, provl lo work for all.