PENALISATION OF THRIFT

Otago Daily Times, Issue 22260, 12 May 1934, Page 19

PENALISATION OF THRIFT

1 ’ V TO THE EDITOR. ; SiR,--A paragraph in the Daily Times of the ,9th iust., makes interesting reading. One cannot but feel'grateful to the trustees of the Dunedin Savings Bank for voting-such a large sum to worthy institutions. Biit a moment's reflection compels one To ask, How did it become possible for the trustees to be so generous? Probably some one will say that it was owing to skilful management; and no doubt there is a good deal of truth in that statement. But when one remembers how many there are who have small incomes, and have made an honest effort to augment their incomes by carefully practising methods of economy and of thrift, the whole truth lies in the circumstance . that j they have been obliged to accept a very low rate of interest on their deposits, so much so‘that many of them find . it very difficult , now to make both ends meet; Here, then, we find one way at least in which the thrifty person is penalised for his thrift, when . the trustees are willing to make handsome gifts to public .institutions at the expense of the thrifty members of. the community.— I am, etc., One of the Many. [A reduction of interest rates is one of the measures which; like the reduction of wa'gbs and. salaries, were forced on the community as a' means towards the end of financial reconstruction. The trustees of the Dunedin Savings Bank, are compelled by . law to limit, the payment of -interest on deposits to 3‘ per cent. The rate is. the same aB that paid on deposits in the Post .Office Savings Bank.— Ed. O.D.T.] : \ •