POST OFFICE SAVINGS BANK
ADMINISTRATION OF FUNDS NO CHANGE IN PROCEDURE UNFAIR CRITICISM ALLEGED (From Our Parliamentary Reporter) WELLINGTON, Oct. 26. The charge that Mr W. A. Bodkin (Opposition, Central Otago) had referred to the administration of the Post Office Savings Bank funds In a way designed to discredit the Government was made by the Minister of Finance (Mr W. Nash) during his reply to the Budget debate in the House of Representatives to-night. "The member for Central Otago made a reference to the Government taking action which meant freezing the Post Office Savings Bank funds," the Minister said, "but he knows that that every pound deposited in "the bank is invested in Government securities. He knows that in 1935, on the evidence he gives himself, there was £42,000,000,in the Post Office Savings Bank funds frozen in this way. Does he object to this freezing of the funds?"
Mr Bodkin: So long as you are going to keep an adequate cash reserve, I do not. "But how can we keep that if we are to use the funds after paying 3 per cent, on them, and after still paying in the 3 per cent, deposit?" Mr Nash said. " How much must we keep to satisfy the honourable gentleman? He knew very well that his reference was used to discredit the Government in its control of the Post Office Savings Bank. That has been whispered all over the country. I want to say that there is nothing more harmful than for a member of this House to try to say that the Government is using the funds in that bank in any other way than they have always been used. The procedure that is followed is the usual one. As the funds come in stock is issued, and whatever cash is needed to meet the demands is provided for. There never has been and never will be any question about the security of the Post Office Savings Bank deposits. It is the safest depositry there is for all kinds of money. There are other places for the investment of certain money, but this bank is the soundest and the safest."
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Bibliographic details
Otago Daily Times, Issue 23333, 27 October 1937, Page 8
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359POST OFFICE SAVINGS BANK Otago Daily Times, Issue 23333, 27 October 1937, Page 8
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