NO BANK MERGER

Wanganui Chronicle, Volume 74, Issue 180, 1 August 1931, Page 7

NO BANK MERGER

COMMONWEALTH AND STATE SIR R. GIBSON’S STATEMENT [By Telegraph—Press Aseociation —Copyright] SYDNEY, July 30. Sir Robert Gibson (chairman of the Commonwealth Bank Board) announces that negotiations by the Commonwealth Bank for the absorption of th. New South Wales Government Savings Bank are definitely off. He saj , the ttniosphere created by the New South Vales Government is such as precludes rhe Commonwealth Bank, in th< naional interest, from being further involved in the affairs of the State Savings Bank. A long statement by Sir Robert Gibson reviews the events prior to the Savings Bank closing its doors on April 23. also the subsequett negotiations for a merger with the Commonwealth Bank. lie mentions that the Savings Bank was undoubterly prejudiced by the Lang Government’s failure to meet its interest obligations, while later the Premier sought to make he merger terms a shuttlecock of poliSir Robert Gibson denies that the terms were harsh. On the contrary they were the best possible In the exceptional circumstances. The P- tier w:i according to reports provided, i biassed in his criticism of the merger I icons, revealing, beyond doubt, that ■ rhe IState Government had failed to j realise the seriousness of the financial , position. Mr Hall, president of the Government Savings Bank and Rural Bank, j informed Air Lang by letter that if i financial assistance is not fortneoming i immediately the Rural Bank must de- j fault, being unable further to help ' f oners. J The Premier rushed the Bill through, j |‘h<‘ Opposition induling in trenchant criticism. I A united protest has been received from the Judges. Air Flynn (Public Service Association secretary), commenting on the I Bill, said t’ it it would sound the death ! knell of Labour for a generation.