AMALGAMATION OF BANKS

Taranaki Daily News, 17 October 1931, Page 7

AMALGAMATION OF BANKS

COMMONWEALTH CONTROL SOLUTION'OF N.S.W. PROBLEM MR. SCULLIN’S DECISION NEGOTIATIONS TO RE-OPEN By Telegraph—Press Assn. —Copyright. Rec. 8.50 p.m. Canberra, Oct. 16. The Prime Minister, Mr. J. H. Scullin, making a long-awaited statement, announced in the House of Representatives to-day that the Commonwealth Government was convinced the only sound way to deal with the problem created by the closing of the New South Wales Government Savings Bank was to amalgamate it with the Commonwealth Savings Bank. Mr. Scullin pointed out that the Commonwealth was unable to guarantee a State institution which was entirely outside its control, and had no power to guarantee the deposits. however desirous the Government might be to help necessitous cases. Mr. Scullin expressed deepest sympathy with the thousands of depositors who had shown faith in a bank which subsequently had been compelled to impound their life savings, and because of that position the Federal Government believed negotiations for an amalgamation should be reopened. The Government was now prepared to co-operate to that end. Mr. Scullin denied the Commonwealth Bank was competing with the new State bank and emphasised that the original proposal for amalgamation with the Commonwealth Bank came from Mr. J. T. Lang, Premier of New South Wales. The text of a telegram from the depositors’ association was read by the Prime Minister as follows: “The 1,000,000 depositors of the New South Wales Savings Bank demand amalgamation of the New South Wales Savings Bank with the Commonwealth Bank.” Mr. Scullin added that most of the money in the New South Wales Savings Bank was invested in State securities totalling £25,500,000, while only £3,750,000 of its investments were in Commonwealth loans.