N.S.W. SAVINGS BANK.

Waikato Times, Volume 110, Issue 18392, 28 July 1931, Page 7

N.S.W. SAVINGS BANK.

ABSORPTION SCHEME. NEGOTIATIONS TERMINATED. NO FURTHER PAYMENTS. United Press Assn.—Elec. Tel. Copyright. SYDNEY, July 27. The negotiations for the Commonwealth Bank’s absorption of the Now South Wales Government Savings Bank suddenly terminated this afternoon. The Lang Cabinet at 3 p.m. had failed to communicate its decision to the directors of Hie Commonwealth Bank as to its acceptance or otherwise of the terms laid down by them. The Cabinet sat throughout the day, ostensibly to deal with this question. In the ordinary course of events It should have reached .finality by noon, when the time limit set by the Commonwealth Bank expired. Mr E. C. Riddle, governor of the Commonwealth Bank, states that since his announcement terminating the merger negotiations he has received a letter from Mr Lang which will be placed before the board of the bank In due course. Tie pointed out that so far as he could see the letter was not likely to alter the decision to end the negotiations. In the meantime, Mr Riddle added, there will be no further payments from the Commonwealth Bank’s funds to necessitous depositors in the State Savings Bank. The sum already paid to them amounts to £1,500,000. Mr 11. D. Hall, president of the State Savings Bank, says necessitous payments ceased to-day at 3 p.m.

DEPOSITORS’ PLIGHT. WORSE THAN BEFORE. MR LANG RETICENT. United Press Assn. —Elec. Tel. Copyright. SYDNEY, July 27. The dramatic collapse of the bank merger negotiation's has caused a painful sensation, particularly among the depositors dn the State Savings Bank, who represent probably 40 per cent, of the population of New South Wales, and whose balances aggregate £54,000,000. The position of the depositors is regarded as infinitely worse now than when the Savings Bank suspended payment some months ago, because under the terms of the proposed •merger the Commonwealth Bank had agreed to ration depositors according to their circumstances and to permit small accounts to be closed. That widespread hardship will ensue is generally admitted in financial circles. Moreover, whatever hope the 2000 employees of the Savings Bank entertained -of receiving posts in the Commonwealth Bank has now practically gone.

Mr Lang would make, no statement after the meeting of the Cabinet this evening, beyond confirming the announcement that he had sent a. letter to Mr-Riddle. It is understood this makes a request for 'reconsideration of the terms of the proposed merger which the Cabinet regards as far too drastic, and for the adoption of which the Cabinet is not prepared to accept responsibility.