THE SAVINGS BANK

Waipa Post, Volume 45, Issue 3215, 11 August 1932, Page 5

THE SAVINGS BANK

LEDGER FACILITIES LOCALLY.

MINISTER REJECTS REPRESENTATIONS.

Once again the Te Awamutu Chamber of Commerce has found an apparently insuperable obstacle —an unsympathetic Minister of the Crown —to its endeavours to secure for the people of Te Awamutu and neighbourhood the same post office savings bank facilities as are provided for the people of the larger centres. The matter came up for discussion at Tuesday evening's meeting of the Chamber.

The Postmaster General wrote re the desired provision of a ledger office at. Te Awamutu post office in connection with savings bank business. His reply was to the effect that it was not desirable to provide ledger facilities in centres with a population of less than 2000, or with n 30 miles of an existing ledger office. Te Awamutu is only 18 miles from Hamilton and has only a population of 1800.

Mr Warburton said it was very evident the Department was averse to giving reasonable facilities to people in country centres who use the post office savings banks. He was convinced that the people of Te Awamutu wouid be well advised to look for some means of establishing somewhat similar banking facilit es. It had occurred to him that the Te Awamutu Terminating Building Society, in its No. 1 group has about £12,000 or £13,000 of undivided moneys, and the shareholders would probably be willing to participate in some sound financial organisation. Te Awamutu is not being treated fairly in its savings bank affairs, and therefore he suggested that steps be taken to promulgate a scheme that would provide the desired facilities.

Continuing, Mr Warburton said the idea re the Bu'lding Society funds had just occurred to him—-he had not yet thought out detai's—but he felt confident that satisfactory guarantees could be given shareholders. What annoyed him especially was the obvious evasion by departmental officials. They were asked for information that should be readily available, and they replied evasively. The Chamber was being fooled. He had personally interviewed the then Postmaster-Gen-eral when the project was first propounded, and he was assured that there were no insuperable obstacles to granting Te. Awamutu's claims. That Minister was a business man and keen to advance the business of his Department along sound lines. The present Minister seemed to be letting his departmental heads direct him, instead of him directing them. Mr Downes questioned whether such a move comes within the province of the Chamber. Mr Clark agreed, but he suggested that the Minister's mis-statements might well be corrected. He knew of local people who did not keep their savings bank business at Hamilton. Te Awamutu is in a special position, for it has near-by two large institutions controlled by the State. Mr Armstrong said Te Awamutu was being harshly treated. He thought it was worthy of more investigation. For instance, Feild.ng is about the same distance from Palmerston North. It was stated both Feilding and Palmerston North have ledger offices. Mr Downes said if Te Awamutu is established as a ledger office, he presumed the depositors in the neighbouring districts of Pirongia, Kihikihi, Pukeatua, Wharepuhunga, Te Kawa, etc., would have their accounts transferred from Hamilton to Te Awamutu. To a question, Mr Pascoe said that may be so. The depositors would possibly be given the opportunity to transfer. , Mr Downes doubted whether it would be a sound business proposition for the Department to grant ledger facilities in Te Awamutu, and it was useless to ask the Department to incur further expense that would not be amply justified. Mr Warburton said the Department had not been approached in the first instance with an unreasonable request. It had been asked what volume of business would entitle Te Awamutu to be made a ledger office. In other words the Chamber had said "let us know what extra business will be needed to make a ledger office commercially sound and we will then see can the busmess be obtained." That seemed a perfectly straightforward request. The Department had replied that a 50 per cent increase wou d be needed and the Chamber was supplied with figures showing the number and value of withdrawals and the number and value of deposits. The Department was then asked whether its stipulation of a 50 per cent increase meant that the number of accounts should be increased or whether the increase applied to the number and volume of transact:'on. There was a clear difference. But when pressed, the Department refused to define just what was meant. In the end the Department sheltered behind its order-in-council regulation for a minimum of popu'ation and a mileage radius. What business, it could be asked, would consider such a method? Population statist ; cs were not a good basis to determine such a question. The Chamber simply wanted to know what the Department would regard as a commercial standard for the establishment of a ledger office. It would appear that the Department did not want the business on any terms. Its regulation was political and not commercial. Mr Bevin said he did not think there was sufficient business to justify the claim for an extra bank of deposit. There are already three. In any case, he thought there would be extreme difficuHy in obtaining a charter for a banking institution. That ! of course, would not affect the position j in regard to the post office savings I bank.

Mr Armstrong said that in his business he met with very many instances of inconven'ence caused by the lack of a ledger office here. Mr West said he concurred with Mr Downes' suggestion that it would not be a payable business for the Department to "provide ledger facilities at Te Awamutu. At Wairoa there is no ledger office yet it has a population of over 2000 and is 80 miles from Napier. Mr Warburton said the Department

had first offered to provide the facilities if there was an increase of 50 per cent in the business, bu; wh«!n it was asked to be more explicit shelter was sought behind the 30 mi e radius and the population figure. Mr Downes said if it were a good business proposit on for the Government, why was it not done? The banks do not miss business that is offering. Mr Warburton: Would you like the banks to be conducted on such hidebound methods as the Post Office Department in its savings bank business. A political regulation making statistical population and mi eage rad us the deciding factor was most unsound.

Mr Downes said there must be very good reasons for the' Department's refusal.

Mr Warburton reminded the meeting that when the electric power project was mooted in Te Awamutu, the Government obstructed it in several ways. Mr Clark asked why, if Auckland Savings Bank could make really good business in the city and suburbs, a similar live enterprise by the Postal Department over the whole Dominion should not do likewise. It would be very good business for the State. He wondered why the Department was not more enterpris'ng.

Finally it was decided to refer the matter of pushing the matter further to the council of the Chamber.