P.0. SAVINGS BANK ACCOUNTS

Otago Daily Times, Issue 20743, 14 June 1929, Page 10

P.O. SAVINGS BANK ACCOUNTS

PROVISION TO OPERATE BY CHEQUE. REFUSED BY POSTMASTERGENERAL. iSi'EOial i.i 13aii ? Times.) AUCKLAND, June 13. the request that provision bo made for Post Office Savings Bank accounts to bo operated upon b„ cheque has been declined by the Postmaster-General (Mr J. B. Donaldj. The proposal was recently made to Mr Donald by a deputation from the Auckland Provincial District Conference of Friendly Societies.

Explaining the serious objections in the way of acceding to the request, Mr ■Donald says: “The primary object of the Post Office Savings Bank is not to pro\lde facilities for the easy withdrawal of moneys, but to encourage thrift. To provide for withdrawals by cheque would involve a compute alteration of the present system, the fundamental condition of which is that a deposit ook must be presented for the making therein at the time of payment of a necessary entry of withdrawal. If an arrangement were made under which cheques could be drawn oh the Post Office Savings Bank the character of the bank voiild bo immediately changed, and the hank- would he brought into competition with the commercial banks. Moreover, the expense of management would be largely increased. The system of withdrawal, by cheque would not he confined to any one sec'tion of depositors, and it is estimated that the expense of applying, such a system generally would be so great that it could be arranged only by making an annual charge, as is done by commercial hanks, or by reducing the rate of interest paid to depositors. “In > connection with the reference at the interview to the system of operating on the Post Office Savings Bank accounts by means of cheques, which was stated to be in operation on the West Coast of the South Island, it is understood that a private savings hank in Hokitika permits its depositors to make withdrawals by means of cheques, and it is this bank, no doubt, the member of the deputation liffii in mind.”