RATANA BANK

Wanganui Chronicle, Volume LXXXII, Issue 19365, 23 July 1925, Page 10

RATANA BANK

HIGH FINANCE. WELLINGTON, July 18. From a native source comes an explanation of the scope of the bank, started by Ratana ostensibly for the benefit of his disciples. The Ratana bank is evidently very ambitious in its proposals, since it contemplates raising a capital sum £34,750,000. This it proposes to do by issuing debentures of £lOOO, payment to be made in instalments extending over ten years. Each person wishing to subscribe to these debentures is expected to find cash to the extent of £250, and the bank will finance the balance in the meantime but the debenture-holders*are expected to have jthe whole of the £lOOO paid up within ■ the ten years, at the end of which (there will probably bo a distribution. I In case this method of subscription is beyond the means of individuals.

they can, if they have any spare cash, lodge it with the’bank upon fixed deposit tit a flat rate of 4 J per cent., or if they prefer it they can purchase coupons of the value of one, three, five, ten, and twenty shillings, and upon these five per cent, will be paid, and they will bo redeemable at the end of ten years. Or if they wish to assist the fund, they can buy trading coupons. I These the native can tender to the ‘local trades in payment of goods. These j will be redeemed by the bank, subject to a discount of one shilling in the pound, which, it is expected, traders 'will allow. This will be credited to the purchaser of the coupon, for repayment jat the end of lon years, but. meantime 'will be used for the hank’s purposes. ! The bank proposes to utilise the funds it raises by advancing money to ! those in the Ratana movement for I farming, and other purposes, at a rate |of interest at six per cent., either upon | freehold, leasehold, or chattel security. I Among other objects, it. will pay off 'existing mortgages, assist the unfinan-

cial, help the widow, orphan, and indigent, and indeed to give any relief which money alone can supply, and of these, the promoters slay, the most wonderful of all is the provision for widows, orphans, and indigent persons upon an equal basis with people of prosperity. How simple the method of repaying the money is made is explained. The bank will lend £lOO, upon which the borrower will pay six per cent. In order to redeem this the borrower will purchase coupons, upon which ho will pay six per cent., while the bank in return will allow six per cent, on the money contributed for coupons. Tn this way £lB is paid each year in respect of that £lOO, so it should not. be long before it is paid off. Of a surety, this is high finance! The system, as placed before the native, seems to be founded upon the principles of the Post Office Savings bank, the Starr Bowkett system, and the Advances to Settlers combined. Its advantages are depicted in glowing

colours to Ratana’s disciples. Maoris readily grasp at such get-rich-quiek ideas as it contains. The matter of stopping the efforts of the bank’s promoters, in the interests of the Maori people, has been under review. It was mentioned in Parliament last yeai, when the Government said it had ig under consideration, but the difficulty was that the victims would give no information on which action could be taken. The Maoris do not consider themselves victims, but rather that they arc being honoured in being given an opportunity to take part in tho amelioration of the financial difficulties of the race. What the promoters arc actually doing with the money received has not been disclosed, secrecy surrounding this point also.