INCREASED BANK RATE IS "SHARP LESSON.”

Star (Christchurch), Issue 18151, 10 May 1927, Page 14

INCREASED BANK RATE IS "SHARP LESSON.”

“ Personally X am rather sorry that j this drastic step was necessary and I ; can only hope that the somewhat : sharp lesson that the have ad- , ministered to us may be so salutary as j to result before long in a rebound to- , wards cheaper money," said Mr \\..| Macliin. president of the Associated j Chambers of Commerce, when asked I for his comments on the action of the banks in raising the interest rates 01 deposits and advances. Mr Machin said that while the increase was regrettable it was not altogether unexpected, seeing that Chambers of Commerce had for some time past been commenting upon the posi- i tion of the banking returns. Moreover. ! for the past two years the pcop.e ot . Xew Zealand had been receiving more i or less strong hints from the great banking institutions that they were not as economical as they ought to be m , trving to live within their incomes. _ “ Probablv,” Mr Maclnn added the announcement will lie received with | considerable dismav by those w-hoare leaning on the banks rather heavily. I don't know what the mercantile institutions will do, but they are aware that i a number of their clients at least can I not bear any further increase in their | oA'erhcad expenses.