THE BANKING YEAR

Wanganui Chronicle, Volume 75, Issue 119, 23 May 1932, Page 6

THE BANKING YEAR

♦Sir, —Like Air. Siddells, 1 want ,o know about the bunking year. Air Jenkins expounded it in a lengthy article. Air. Tingcy then came in =* week later with a criticism or a tom mentary, lam not sure which: Mr. Jenkins intimated that he was nut pre pared tb follow Air. Tingey in his per ambulations and asked fur Air. Tin gey’s major point. »So far it has not been forthcoming. Whyf 1 Mint know I Then into the fray comes “ Practi cal Thinker.” He is passing *.hroug> Wanganui, so cannot stay to slay M' Tingey. But he takes up just one o Mr. Tingey’s points. Air. Tingey a* sorts that to provide the Govern men’ with £2,000,000 by the banks taking ; up Treasury bills to that amount “har not cost the banks a postage stamp. “Practical Thinker” points out tha’ for a bank to exchange 100 of its ow> £ notes for a £lOO Treasury bill wouJu involve the bank in the payment o' £5 7s 6d per cent, in note tax am* income tax. The bank would, there fore, have to get a discount on intei est on the Treasury bills to provide for these taxes and provide tho bank with a profit on the transaction. Air. Tingey, in his reply, asks whether “Practical Thinker” experts to be believed. Well, let us see what to make of it • ATr. Tingey does not deny that th n note tax is £4 16s per £lOO. Air Tingey does not deny that, the bank pays 8s 9d income tax on £lOO deposit and another 8s 9<l on £lOO advance making £5 7s 6d taxation on such a transaction as is outlined. I have, in my curiosity, asked a

lawyer to look up the statutes and he assured me that these taxes are quite correct. Mr. Tingey, therefore, can not brush these aside by a skin:-’ whether tho public will believe that the banks are philanthropic, instil it lions. “Practical Thinker’s” state ments can be proved by reference to the statutes. The statutes cannot be denied and, therefore, I take it ns proved that the exchange of 100 notes of £1 each for a Treasury bill would cost the bank £5 7s Gd. This is more than a postage stamp, so unless Air. Tingey can show tno that the banks get round the statutes and don’t pay what they should. I must conclude that Mr. Tingey doos not really know anything about banking at nil, and that is why ho strings together, with out much to connect them, statements by various bankers and economists, which, when taken from their context, might mean something quite different from what they would moan when read in their context. A list of quotations is not an argument. I am not surprised, therefore, that Mr. Jenkins refuses to follow Mr. Tingey, but asks for his major point. Like Mr. Siddoßs, 1 still want to know. I want to know what is Air. Tingey’s major point and then I want tn know what ATr. Jenkins thinks about it. I shail therefore bo very grateful to ATr. Tingey if he will state shortly without citation from authorities what his major point is. Ynurs. etc.. “QUID NUNC,’’