POST OFFICE FUNDS.

Star (Christchurch), Volume LXVI, Issue 20556, 6 March 1935, Page 8

POST OFFICE FUNDS.

Security Given for Money Advanced. QUESTION RAISED BY M.P. “ Star ” Parliamentary Reporter. WELLINGTON, This day. The charge that the Government under the Mortgage Corporation Bill was playing pitch and toss with the savings of the people in the Post Office Savings Bank was made by Mr W. E. Parry (Labour) in the House yesterMr Parry said that it should be realised by depositors that the funds in the Post Office Savings Bank were lent to the Government and invested in State Advances securities. The people naturally looked to the Government for the payment of interest to them, but now the State was proposing, without consulting depositors, to transfer tho c e securities to a semi-private organisation. What was happening did not tend to make for confidence in the community, particularly when it was understood that the aim of the corporation apparently would be to wring out the moisture, so to speak, and select only the securities which suited its purpose. Mr Parry asked who would carry the burden of the rejected securities.,, Mr Coates: Who carries it now? Mr Parry: The nation. Mr Coates: Most of it? “Why not be straightforward?” asked Mr F. Langstone. Later in the debate the Minister said that as to the point about the people’s savings being in jeopardy, as suggested by Mr Parry, it was true that money was taken out of the Savings Bank and security for it was handed over in the form of Government stocks and bonds and in other forms of security such as Treasury bills. It made no difference which form of security was used. That was the security the Post Office held in each case in return for money advanced for different purposes. Mr Langstone: The Government is responsible. Mr Coates: Exactly. Mr Parry: The people lend to you. and nat to the corporation. Mr Coates: 5 es. The Government has given an instrument in return.