BANK RATES

Stratford Evening Post, Issue 56, 4 May 1928, Page 5

BANK RATES

REDUCTION DESIRED.

BANKS APPROACHED

Press Association —Copyright

WELLINGTON, May 3

The following letter has been addressed by the president of the Associated Chambers of Commerce of New Zealand, Mr D. J. McGowan, to th e chairman of the Associated Banks:— J

"When my association last addressed you on the subject of interest rates the figures of the March quarter were not available. Having since been made public, they afforded ample proof of the easier monetary condition of the Dominion. If figures were available relative to the deposits and advances of the banks to-day, would they not disclose a position even better than shown by the fiures of the March quarter? The average trade figures for the year ended March SI also are evidence that for the time being, at least, a check has been given to over trading. ' "In the circumstances my executive is of opinion that the Associated Banks should reduce the rates charged for advances on overdraft at least by the extent of the onehalf per cent, increase made in May last. If not expedient to make a reduction to apply immediately, at least an announcement could be made to take effect say on June 1.

"The rates- charged by the Associated Banks are not only accepted as an index of the conditions within the Dominion and govern the rates of financial operations such as loans on mortgages, but they largely 'set the pace' of development in Loth primary and secondary industries. No evidence of returned confidence would be more (significant than the decision which we again ask the Associated Banks to mak*e without delay."