POST OFFICE SAVINGS BANK.

Taranaki Daily News, 23 July 1929, Page 8

POST OFFICE SAVINGS BANK.

Though taxpayers have not yet been informed in what manner the large surplus earned by the Post and Telegraph Department last year has been disposed of, the reply of the Prime Minister, speaking as Minister of Finance, in regard to deposits in the Post Office Savings Bank will be generally appreciated. Labour members had suggested that the practice of paying interest on deposits up to £5OOO should be reverted to. It is not surprising that the Party should have urged the Ministry to take this course, for one of the charges made by it against the Reform Government was that at the dictation of the banking interests the functions of the Post Office Savings Bank had been curtailed. _ Sir Joseph Ward met the request with a definite refusal. He pointed out that to grant it would threaten the destruction of the character of the Savings Bank. Its function is to assist in the development of thrift, particularly among those whose incomes arc of modest dimensions, and to act as the repository of the savings of the people. The raising of the limit of interest bearing deposits . to £5OOO was part of wartime legislation, the intension being to increase the funds that could be used by the. Savings Bank with advantage. In practice it soon became a method whereby traders obtained interest on current accounts. It meant the holding of large sums at. call, and generally performing the services which commercial banks arc prepared to render, and for which they receive payment. For these reasons a return to the £5OOO maximum of interest bearing deposits is impracticable. The Savings Banks purpose is to afford people with limited means an opportunity of obtaining interest upon their savings,, and at the same time have the fruits of their thrift immediately available for use in any emergency For those with greater financial resources, or those, seeking investment of a more ambitious nature, there are ample opportunities made available by private enterprise.