SAVINGS BANK SECURITIES.

Poverty Bay Herald, Volume XLIX, Issue 16174, 10 July 1923, Page 7

SAVINGS BANK SECURITIES.

INTEREST RATE DEFENDED

(Per Press Association.) WELLINGTON, last night.

The Postmaster-General laid on the table a return showing the securities held by the Post Office Savings Bank at thei date l of expiration. Replying to Mr. Wilford, the Prime Minister said that, during the next six years, there would bo loans amounting to about sixty,millions .falling due, about half of - which - was due to .the Public DeWitht some‘debts' it: was sometimes .difficulty', to get . renewals, but there "was no' difficulty, with the Post Office. * All that happened was that tho Minister of Finance and the PostmasterGeneral met and agreed on what was afair rate of interest to be paid for the money, and tho loan was accordingly renewed. It was different in the case of London and even Australia, where lenders wanted cash, but the Post Office never wanted the money back. He was going to ask Parliament to renew tho authorities for expenditure, particularly for the Advances Deportment. These were- running out, and lie did not -wish to bo caught with the moratorium. He did not know at the moment how he would get on with the Public Works Fund, because the Public Works expenditure would be larger this year than for some time, principally on account of floods and railways. Mr. Veitch urged that the Premier should endeavor to apply all the available Post Office funds to the building of houses for the people. Tho Postmaster-General defended the rate of interest paid by the Post Office. Tho money was on call, and 4 per cent, was not a- bad return under the circumstances. It was higher now than some time ago. Mr. Massey, in further explanation, said there were behind the Post Office Savings Bank not only tho securities mentioned in the return laid on the table, but there was the security of the whole country, which, after all, was the important thing.