BANK WASH DEADLOCK

Taranaki Daily News, 31 July 1931, Page 7

BANK WASH DEADLOCK

THE NEGOTIATIONS “OFF”-

rural bank now desperate

IMMEDIATE HELP NEEDED

UNABLE TO AID FARMERS

By Talegraph—Preu Assn.—Copyright. Rec. 12.45 a.m. Sydney, July 30. Sir Robert Gibson, chairman of the Commonwealth Bank Board, announces that the negotiations by the Commonwealth Bank for the absorption of the New South Wales Government Savings Bank are definitely “off.” Ho says the atmosphere created by the New South Wales Government is such as to preclude the Commonwealth Bank in the national interest from being further involved in the affairs of the State Savings Bank. A long statement by Sir Robert reviews events prior to the Savings Bank closing its doors on April 23, also the subsequent negotiations for a merger with the Commonwealth Bank. He mentions that the Savings Bank was undoubtedly prejudiced by the Lang Government’s failure to meet its interest obligations, while, later the Premier sought to make the merger terms a shuttlecock of politics. Sir Robert denies that the Commonwealth Bank’s terms were harsh. Qn the contrary, he says, they were the best possible in the exceptional circumstances. The Premier was, according to reports provided, biassed in his criticism of the merger terms, revealing beyond doubt that the State Government had failed to realise the seriousness of the financial position. Mr. Hall, president of the Government Savings Bank and the Rural Bank, has informed Mr. Lang by letter that. if financial assistance is not forthcoming immediately the Rural Bank must default. It is unable further to help the farmers.