A STATE BANK .

Otago Daily Times, Issue 18547, 6 May 1922, Page 10

A STATE BANK .

f STATEMENT BY THE PRIME MINISTER. " BANK FIGURES. i .:!“ I ‘BpSjPARISON WITH BANK OF H • • NEW ZEALAND. - /'• ■■ ■ Jmittd Psxaa Associatiow.) , j.. /t;. «.■ WELLINGTON, ’ May. 5/ 1 • 'ftWß&flriJlr Massey was in Gisborne he ? was approached by Mr Francis Stafford <fft"-"theT 'subject of a- State bank, and rey plying to . an Interviewer promised on his return jtq , Wellington to send a written ; ‘ teipff. " In his reply Mr Massey analyses the assets and main figures in the balance '■ sheet of the Commonwealth Bank, and says i he is disposed to view ■ with favour any ' State banking business under exclusive Government management, “The actual profits’ made by the Commonwealth Bank :dunng 'K) years, for which I have complate figures.” says the Prime Minister, ■ • ‘<haa amounted to £3,451,365 13s lOd. That V eum is equally divided between the reserve r ? and the redemption funds of- the bank, and actually represents its sole capital. The greater-part of the bank’s general business .of accounts of the Federal. and •„ (Spite!.-. governments, [ with their many of activity, and quite -a. large ' number of local bodies. As a matter of i ■ iact its ordinary advances (apart from Gov- :: Moment.accounts) merely amounted Inst '■ ifa.,-£18,657,922, that sum including local governing bodies.. . .It is evrdep.t: : frpm this that the trading public is not receiving any great • amount of coni' from the Commonwealth. Bank, ; and contrasted with similar advances made ; by. the* Bank of New Zealand during its 1 last financial year, amounting, to £32,715,166 ' auch-result can only be regarded as dxsv. tirjotly ; disappointing by advocates of Sta,to i blinking 'in this country. T am satisfied • that we can show better results under our v existing method of doing business than > we-.shotdd be able to do with a State bank th--’existence. The New Zealand Govern nxpjxt ..received from the Bank of New. Zealand-last yeag-.a total of £588,500 in the shape of taxation, and its share of the |L bank's. profits. The Commonwealth Bank con tributes nothing tp the taxation revenue k of th*j Comnvrnwealth or State Governy' XQ ente, «nd I believe it is even exempt,from local rates. So far the Federal Goverxx- ■ raent of Australia has not received a penny ■ in the shape of revenue from this bank.’’