LANG COMPLIES

Taranaki Daily News, 29 April 1931, Page 7

LANG COMPLIES

SAVINGS BANK OF N.S.W.

TRANSFER OF THE BUSINESS TAKEN BY COMMONWEALTH RIGID CONDITIONS SET OUT DEPOSITORS CANNOT DRAW BILL PASSED BY ASSEMBLY By Telegraph—Preps Assn.—Copyright. Rec. 7.45 p.m. Sydney, April 28. Following the suspension of payment by the Government Savings Bank of New South Wales, the State Premier and Treasurer, Mr. J. T. Lang, in the New South Wales Assembly to-day introduced a Bill entitled the Government Savings Bank Amendment Bill, authorising the transfer of Government Savings Bank business to tire Commonwealth Bank in accordance witlr the summarised terms laid down by the Commonwealth Bank in its offer of assistance last week. The Bill passed all stages without amendment. Every part of the Assembly was crowded in the expectation of a bitter attack upon Mr. Lairg. Among the important provisions of the Bill is one authorising the Commonwealth Bank to make payments to depositors in the Government Savings Bank “only in such cases and upon sueli terms as the Commonwealth Bank may stipulate,” while the moratorium clause suspends the rights of depositors foi a maximum period from April 23 to December 31 or such further period us may be proclaimed by the Governor, No depositor nor customer of the Govenunent Savings Bank may sue either that bank or the Crown for non-payment of any deposit within the period prescribed by the moratorium or bring an action in respect of the dishonouring by the bank of any cheque or draft. The Government of New South W ales agrees to guarantee tile. Commonwealth Bank against all loss arising out of advances made on behalf of the State Savings Bunk and the Treasurer and Commissioners are empowered to arrange for the transfer of the whole or part of the State Savings Bank deposits to the Commonwealth Bank. “DELIBERATELY BROUGHT DOWN.”

Speaking to the second reading of the Bill, tlio Premier declared certain Opposition members had destroyed the Government havings Bank in the hope it would bring about the Governments downfall, He went on to relate incidents which led to a rum on the banks funds and its suspension of payment. “There are incn in this House,” he Shouted, “who deliberately brought about the downfall of this grand institution.” , . , Mr. Foster (Nationalist): Ton brought it down without a doubt (Oppositibn cheers). . x Mr. Lang: All I ask now is that members curb their poisonous tongues so that the amalgamation negotiations may continue to a successful issue. Then at an early date they may have a chance of making whatever defence they can for their shameful and traitorous conduct. Mr. B. S. B. Stevens, Deputy-Lender of the Opposition in the absence of Mr. T. R. Bavin, who was attending his mother’s funeral, said the excess of withdrawals over deposits in the Government Bank between July, 1930, and the date when the bank closed approximated £116,000,000 and when payments were suspended the bank had practically no cash in hand. On the other hand the Government of the State held more than £7,000,000 of the bank’s deposit moneys. The Government had been unable to raise one penny to meet its obligations to the bank because of the widespread discredit it hud brought upon the State by its dishonest repudiation policy. “The failure of this bank is definitely and solely traceable to the Lang Gov* eminent,” he said. “A most serious run on the bank’s funds occurred after Mr. Lang’s default to British bondholders on March 27 arid after his statement to the Easter Labour conference concerning the socialisation of industry and finance.” The Bank Bill was read a second time. While the Bill was in the committee stages Mr. Stevens asked the Premier whether any arrangements were being lhade to absorb the Government Savings Bank employees. Mr. Lan'g replied thtit the matter would be considered when the amalgamation was being discussed. ,Mr. Stevens also asked whether the depositors would receive an assurance that they would receive the whole of their money from the Government Savings Bank. Mr. Lang replied that the whole of the deposits would be paid in full because the bank was backed by the State of New South Wales.