P.O. SAVINGS BANK WILL NOT PROVIDE FOR CHEQUE ISSUES.

Star (Christchurch), Issue 18785, 14 June 1929, Page 3

P.O. SAVINGS BANK WILL NOT PROVIDE FOR CHEQUE ISSUES.

WOULD BE CONTRARY TO THE PRINCIPLES, SAYS HON J. DONALD. (Special to the “ Star.”) AUCKLAND, June 13. A request that it be made possible to issue cheques on Post Office Savings Bank accounts has been refused by the Postmaster-General, the lion J. B. Donald. The proposal was made to Mr Donald by a deputation from the Auckland conference of Friendly SoC 1 Explaining the serious objections to the request, Mr Donald says: The primary object of the Post Office Savings Bank is not to provide facilities for the easy withdrawal of moneys, but to encourage thrift. To provide for withdrawals by cheque would involve a complete alteration of the present system, the fundamental condition of which is that the deposit book must be presented for making therein at the time of payment of the necessary entry of withdrawal. If an arrangement were made under which cheques could be drawn on the Post Office Saving Bank the character of the bank woul( be immediately changed and the banl would be brought into competitioi with the commercial banks. Moreover the expense of management would be largely increased. A system of with drawal by cheque would not be con fined to any one section of depositors and it is estimated that the expense of applying such a system generally would be so great that it could be arranged only by making an annual charge, as is done by the commercial banks, or by reducing the rate of interest paid to depositors.

“In connection with the reference at the interview to the system of operating on Post Office Savings Bank accounts by means of cheques stated to be in operation on the West Coast of the South Island, it is understood that the private Savings Bank of Hokitika permits its depositors to make withdrawals by means of cheques, and it is this bank, no doubt, the member of the deputation had in mind.”