INTEREST ON DEPOSITS

Otago Daily Times, Issue 21643, 13 May 1932, Page 10

INTEREST ON DEPOSITS

DETERMINING THE MAXIMUM GOVERNMENT SEEKS INFORMATION. (Per United Press Association.) WELLINGTON, May 12. The following statement was issued today by the Minister of Finance (Mr Downie Stewart): — . “ Under parts , V and VI of the National Expenditure Adjustment Act provision is made for fixing by Order-in-Council the maximum rate of interest that may be paid for deposits by savings banks, building societies, investment companies, and trading companies. Any such Order-in-Council may fix different rates for different classes of deposits, to apply to present or future deposits, or both, as may be specified in any such Order-in-Council. The legislation has been passed with the intention that deposits shall be brought within the scheme for an all-round reduction in interest rates. In fixing the maximum-rates, however, and determining the extent to which they shall apply to present and future deposits, the Government fully realises that the maximum rates fixed for one class of institution must bear a definite relationship to the rates fixed for other institutions. Further, the deposit rates agreed upon for bank deposits have also a direct bearing upon the maximum rates fixed for all other institutions. Accordingly the only equitable procedure is to compile a schedule and deal with the rates for all institutions at the same time. As, however, the (government has insufficient information in regard to the present, deposit rates of many institutions which will be affected by the fixing of maximum rates, I shall be glad to receive any representations which institutions or others concerned may care to make in regard to the matter, but I would prefer that when institutions of a similar nature are associated in any way the representations should came from the association. “ What is particularly desired is exact information in regard to the present deposit rates and particular's of any special circumstances. As the Government wishes to take action as soon as possible, I have to request that all representations should be made in writing and forwarded so ag to reach me not later than May 20.” ■ '