POST OFFICE SAVINGS BANK.

Timaru Herald, Volume XIIC, Issue 13677, 20 August 1908, Page 6

POST OFFICE SAVINGS BANK.

To the Editor of If.he "Timaru Herald." yir,—l have ,read with '.much interest your excellent articles on the municipalising of gasworks, tramways, and the like, and it lias occurred 1)0 me that possibly you might be able to answer the following question. How. does the Poet Office Savings Bank pay Sj . per cent, interest on 'the- moneys deposited with them? Taking the hist returns to hulid (31 December, 1906), there appeals to be £9,698,992 earning interest and deposited in the Post Office. The majority of this is borrowed by the Government, the balance a. comparatively small amount (included in which is £10,000" borrowed by the Hokitiki Harbour Board, whose arrears of interesti -amount to £4,llß—none paid for 10 years') has been lent to local' bodies. £2,300,000 is earning 3 percent, interest. £5,400,000 is earning 3£ per cent. Now when there is a Ices of ± per cent on the first amount and nothing made on the second, and working expenses have to bo paid, can you explain to the poor ratepayers of the Dominion'how the miracle is achieved.—l am, eto.y MODEST 808.