STATE BANKING

Southland Times, Issue 19508, 6 May 1922, Page 5

STATE BANKING

MR MASSEY’S ATTITUDE ANALYSIS OF COMMONWEALTH BANK’S OPERATIONS. (Per United Press Association.) WELLINGTON, May «. When Mr Massey was in Gisborne he vw approached by Mr Francis Stafford on th® subject of a State Bank, and. replying to the 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 not disposed to view with favour any State banking business under exclusive Government management. “The actual profit made by the Commonwealth Bank during the ten years for which I have complete figures,” he saya, “has amounted to £3,451,365 13s 10d. That sum is equally divided between the reserve and redemption funds of the bank, and actually represents its sole capital The greater part of the banks general business consists of the accounts of the Federal and State Governments, with their many branches of activity, and of those of quite a large number of local bodies. As a matter of fact its ordinary advances (apart from Government accounts) merely amounted last year to that sum including loans to local governing bodies. It is evident from this that the trading public 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 a result can only be regarded as distinctly disappointing by advocates of State banking in this country. I am satisfied that we can show better results under our existing method of doing business than we should be able to do with a State Bank in existence. Tha 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 if the bank’s profit®. 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.”