BANK RATES ON OVERDRAFTS

Otago Witness, Issue 3862, 20 March 1928, Page 72

BANK RATES ON OVERDRAFTS

A REDUCTION SOUGHT. AUCKLAND, March 15. “ It would only be asking for a snub to ask for a reduction in the bank rate at present,’’ declared Mr A. G. Lunn at a meeting of the council of the Auckland Chamber of Commerce when a request was received from the Canterbury Chamber for support to a resolution asking for an immediate reduction of overdraft rates in. view of the fact that the adverse course of the trade of the Dominion had . been checked. “ There is still a doubt as to the wisdom of asking the banks to reduce their rates on overdrafts,” said the President (Mr H. T. Merritt), who added that the executive had been advised that the state of normality in trade had not yet been restored. It would be better to wait until more stable conditions obtained. The following resolution was carried: —“ That in the opinion of this chamber it is important in the interests of trade recovery that immediately the statistical position of the banks as regards London balances and as regards the ratio of advances to deposits shows signs of approaching normality the bank ■' rates of exchange and interest should be restored to points approximating those prevailing 11 months ago." A resolution pressing for a reduction in the bank rate of interest on overdrafts was passed at the annual conference of the New Zealand Federation of Drapers, Clothiers, and Boot Retailers. The question was introduced by Mr C. Ogilvie, of Christchurch, who said an increase in the rate had been made by the banks, due to the excess of imports over exports. That position did not obtain at present. There was a great deal of money in tTTe banks, and they were more ready to grant overdrafts. It was decided to make representations to the banks in conjunction with the Associated Chambers of Commerce.