INTEREST RATES

Waipukurau Press, Volume XXVIII, Issue 117, 12 May 1932, Page 5

INTEREST RATES

Ob Deposit Mosey

MINISTER’S STATEMENT

INFORMATION DESIRED

(Per Press Association) WELLINGTON, This Day. The following statement was issued to-day by the Alinister of Fnance:-— “Under Parts V. and VI., of the National Exepnditure Adjustment Act provision is made for fixing by order-in-council, the maximum rates of interest that may be. paid for deposits by savings banks, building so-

cities, investment companies and trading companies, and such order in council may fix different rates for different classes of deposits, to apply to present deposit or future deposits, or both, as may be specified in any such order in council. Legislation has been passed with the intention that deposits should be brought within the scheme for an all round reduction in interest rates. In fixing the maximum rates, however, and determining the extent to which they should apply to present and future deposits, the Government fully realised that the maximum rates fixed for one class of institution must beai' de' finite relationship to rates fixed for other institutions. Further, the deposit rates agreed upon for bank deposits have also a direct bearing upon the maximum rates fixed for all other institutions. Accordingly the only equitable procedure is to compile a schedule and deal with the rates for all institutions at the same time. As, however, the Government has insufficient information in regard to the present deposit rates of many institutions which will be affected by the fixing of maximum rates, I shall be glad to receive any representations which institutions, or others concerned, may care to make in regard to the matter, but I would prefer that when institutions of a similar nature are associated in any way, representations come from the association. What is particularly desired is exact information in regard to present deposit rates and particulars of any special circumstances. As the Government wishes to take action as soon as possible I have to request that all representations should be made in writing and forwarded? so as to reach me not later than 2 oth inst.