VALUELESS CHEQUES

Waipa Post, Volume 49, Issue 3555, 8 December 1934, Page 6

VALUELESS CHEQUES

BANK RATES AND EXCHANGE. I At last meeting of the Te Kuiti Chamber of Commerce, says the Chronicle, Mr Holah brought up the matter of the issuing *>f valueless cheques. He said that there were ipeople who wrote out cheques while having no money in the bank and this put business to a lot of trouble. It was a dishonest practice and should be made an indictable offence. 'Most members agreed with this point of view, and it was decided to m'ake further enquiries as to the legal position. Mr Jones drew attention to the fact that exchange on cheques was charged on all -cheques issued in tihe Tangitu district, whether issued on banks at Te Kuiti or Taumarunui. In some cases the recipient of the cheque charged exchange on cheques even though drawn on a bank in the sametown in which the recipient banked. - It was pointed out that the person who cashed these cheques had no right to charge exchange if he banked in the same tolwn as where the cheque was issued on. ■Mr Jong's also brought up the question of the bank charge for keeping accounts. This had been raised from 10s to 20s a year, the reasons being that the Government had raised the tax on the note issue. The speaker said tha,t he understood that when the notes of the trading banks were taken out of circulation the tax would be reduced and it was only right that the charge for keeping accounts should also be reduced.

It was pointed out that there was a considerable number of notes of the trading banks in circulation, and until these had been withdrawn the position was obscure as to the tax on the note issue. It was decided to take no action in the matter in the meantime.