A STATE BANK

Otago Witness, Issue 3556, 9 May 1922, Page 50

A STATE BANK

STATEMENT BY THE PRIME MINISTER. WELLINGTON, May 5. When Mr Massey was in Gisborne he was approached by Mr Francis Stafford on the subject of a State -hank, and replying to an, interviewer promised on his return to Wellington to send a written reply. In his reply Mr Massey analyses the assets and main figures in the balance sheet of the Commonwealth Bank, and says he is disposed to view with favour any State banking business under exclusive Government management. “The actual profits made by the Commonwealth Bank during 10 years, for which I have complete figures,” says the Prime Minister, “has amounted to £3,451,365 13s lOd. That sum is equally divided between the reserve and the redemption funds of the bank, and actually represents its sole capital. The greater part of the bank’s general business consists of accounts of the Federal and State Governments, with their many branches of activity, and quite a large mi in her of local bodies. As a matter of fact its ordinary advances (apart from Government accounts) merely amounted last year to £18,657,922, that sum including loans to local governing bodies. It is evident from this that the trading rmblio is not receiving any great amount of consideration from the Commonwealth Bank, and contrasted with similar advances made by the Bank of New Zealand during its last financial year, amounting to £32,716,166 such result can only be regarded as distinctly disappointing by advocates of State hanking in this country. I am satisfied that- we can show better results under our existing method of doing business than wo should be able t-o do with a State bank in existence. The New Zealand Government received from the Bank of New Zealand last year a total of £588.500 in the shape of taxation, and its share of the bank’s profits. The Commonwealth Bank contributes nothing to the taxation revenue of the Commonwealth or State Governments, and I believe it- is even exempt from local rates. So far the Federal Government of Australia has not received a penny in the shape of revenue from this bank.”-