BANKING SYSTEMS

Otago Daily Times, Issue 21920, 4 April 1933, Page 10

BANKING SYSTEMS

TO IHB EDITOR. g IB in your issue of the 27th there auneared an article- dated Sydney, the 16th', wherein Mr man of the Associated Banks of Victoii , made an appeal to the people of Australia to have faith in\ the banking system ■is at present constituted, ft is qunc evident, P after reading; the article that the banks are becoming concerned at the publicity which is being given to the policy and system under which they ar managed, especially smce I™, which policy has not been to ,the good ot tu country in general or tie individual in particular? who was unfortunate to have securities revalued at a moments notice. Mr Wreford did not tell the people i amt article that owing to the banks r£ - ins the rate of exchange to 35 per cent many millions of pounds cu^! at ®hich. the credit of the banks in they were unable to dispose of and had not the Commonwealth Bank come to the rescue B in all probability Australian banks would have been, in a-similar posi ■« ZT CoUc* wealth Bank is sufficient to statement as to the value ; t (lie people of Australia. a that, like the people ofNewZeaiand who saved the Bank of New Zealand m 1894 from bankruptcy, the people °|; A. tralia have saved the Australian, banks. We now read of the probability . dent Roosevelt passing legislation to c rect “ unethical and unsound prartices o the part of officers and directors oi banks” Had such legislation freen in force in Australia and New Zealand this last few years I am sure things would be Vs bad as they are to-day and many hundreds, perhaps thousands, of P P would not to-day be m premature grave or in mental hospitals, whilst thousands of their dependents are a charge upap tl resources of the State. Dr Rmzig; in his brilliant book, ‘‘The World; Eco nomic Crisis,” states that .in some poun tries banks adopted a P?^ IC 7 reirirdfirst” and called in their l° an * r , e,^ l -‘ jess of consequences. To etippart thm statement T know an unfortunate »ho < * given 48 hours by his hank to hnd a con siderablc sum. The hank kuew he was impossible, and actually had the nee sarv documents signed and sealed 1,1 Supreme Court before the hour of grn was np. despite the fact that the sea i . was sound, and when he appealed fo _ month’s grace it was denied aml he waa sold up. How institutions which adojpl such a policy regardless °f consequents can expect to retain the confidence of W?e people is beyond human conception/- J am, etc.. V - LANGLEY. , Rt. Tvilda, March 31.