CRITICISM OF BANKS

Poverty Bay Herald, Volume LV, Issue 17498, 19 June 1931, Page 7

CRITICISM OF BANKS

REFERENCE BY DIRECTORS WHEN NASTY THINGS ARE SAID (Special to the Herald.) WELLINGTON, this day. Some reference to the criticism of banks was made at the annual meeting of the Bank of New Zealand. “We are all proud of the position to which the bank has attained —the shareholders as well as the directors and staff —and 1 believe that the vast majority of the people of the Dominion are pleased to have an institution of such strength and usefulness,” states the chairman, Mr. William Watson, “but sometimes—perhaps ordained in order that we may walk humbly—■irresponsible critics, air what they believe to be their wisdom by talking or writing against us. In similar case the governor of an important bank in fjouth Africa remarked humorously, ‘Afost of the criticism reminds me of the story of the boy who was one (lay found whipping! a toad and muttering, i’ll lain you to be. a toad.’ ”

“The dividend and bonus in the eyes of the public may appear large,” stated Sir Harold Beauchamp, “but I would repeat what lias been often mentioned at gatherings such as this—that return represents only a moderate one upon the actual resources of the bank. If these factors are considered, this return would represent not more than, say. 7 per cent, upon the total of shareholders’ funds employed.” “When times are bad,” remarked Air. Richard W. Gibbs, “the banks come in for the usual abuse and are charged with causing unnecessary deflation, re stnetion of credit, and so forth. I can only say that so far as we are concerned, it has not bcpn found necessary to restrict any credit for any legitimate, business, and the needs of both our country and town customers have bad the fullest consideration. However, do as you will, it is difficult to satisfy all our critics, but when nasty tilings are said of von, :t L well to remember (lie old adage—‘Only trees (hat bear fruit get stones thrown at them.’ ”