MUNICIPAL BANKING.

Stratford Evening Post, Volume XXIX, Issue 114, 5 July 1911, Page 3

MUNICIPAL BANKING.

It was staWd'in an iirticle in tlio “Lyttelton Timas” a few days ago that under the Municipal Corporations Act of 1909 every borough council and city council in the Dominion had been constituted a hanking concern. Referring to the subject, Mr H. 11. Smith, Town Clerk of Christchurch, said that the Christchurch City Council for some yfeh'tfS had taken advantage of the powers it possessed in this direction. '■ It accepted deposits of sums not kkss than £IOO each,’ and paid 3 per eeiit interest, giving a receipt, which it acknowledged at any time, if the docuhiont' was endorsed by the dopositor, I ,’ ’unking it'negotiable in that respeht 1 . 1 r i’lie trahsation’ could bo terminated by either party ,n seven days’ notice. Largo sums of m .ne\ were entrusted to t!i3 Council by depositors, and appeared in file municipal accounts as “temporary loans ’ Business people sometimes i.ovke use of the Council’s banking depailn.cut. to deposit, for a few Cay s ironies that they intended to send Home by mail. The Council began t'm practice in order to save interest charges. The hank rate was d per rent, and by accepting deposits upon which it paid/ 3 per cent, it saved 2 per cent. Several thousand pounds Pad been saved in'-‘that way since the Municipality ■ first on toted into the tanking business. All the money cont.iUnited by the public to'the; fund for the King tlcoige b’.irnorial home was dealt with as ,a .deposit. Ibe contributions were handed to tlie Town Clerk by the My;,•or, and weie j laced in the .tempoibr'y ibans account, and the Council immediately began to credit, the contributions wan 3 \cr cent, interest. •