PRICE OF MONEY.

Taranaki Daily News, 17 September 1924, Page 5

PRICE OF MONEY.

COMPLAINT BY THE BANKS. GOVERNMENT COMPETITION. By Telegraph—Press .Association. Wellington, Last Night. The price of money was briefly discussed in the House this afternoon. The Hon. J- A. Hanan (Invercargill asked the Premier if it was a fact that the banks were seeking to bring pressure to bear on the Government with a view of preventing the Public Trust Office taking money on deposit. Mr. Massey said he had received a newspaper cutting on the subject. The statements made in this paragraph were not strictly correct, although there was something in it. He was trying to keep down the price of money and he was opposed to anything in the direction of keeping the price of money up. He had had to protest against the action of some heads of deSartments who were inclined in that ireetion. So far as he was aware the banks had not attempted to interfere in any way with the Public Trust Offihe. Hi; had received a communication from the banks six or eight weeks ago complaining that the Public Trust Office was entering into unfair competition with the banks and was paying more for money than the hanks, and therefore it was impossible for the banks to reduce the rate of interest.

The Leader of the Opposition (Mr. T. M. Wilford) asked if the banks made any reference to harbour boards. Mr. Massey replied that the banks did not complain that harbour boards wore taking deposits, but they did complain that harbour boards were making deposits with the Public Trustee. The Hon- J. A. Hanan: Surely the banks do not expect to have a monopoly? Mr. Massey: No, but they do want to keep the price of money down. There is nothing serious in what has happened.