N.S.W. SAVINGS -BANK.

Waikato Times, Volume 110, Issue 18393, 29 July 1931, Page 7

N.S.W. SAVINGS -BANK.

PAYMENT SUSPENDED. MR LANG’S STATEMENT. LETTER TO COMMONWEALTH BANK United Press Assn.—Elec. Tel. Copyright. SYDNEY, July 2S. The Premier, Mr J. T. Lang, in the New South Wales Legislative Assembly to-day tabled a letter he had sent to the Commonwealth Bank, seeking a modification of the terms of the proposed State Savings Bank merger. Mr Lang asked the board to discuss a plan for the re-opening of the New South Wales Government Savings Bank as a State institution, and offered to lodge up to £20,000,000 of Government securities against the backing of £10,000,000 sought from the Commonwealth Bank. Mr Lang also objected to the demand from the State of nearly £32,000,000 by half-yearly instalments over 10 years, commencing in 1934. which would entail upon the taxpayan annual payment of between £3,000,000 and £4,000,000. This he contended in view of the present financial stress was likely to be beyond the capacity of any State Government. Further, the stipulation that the State should not at any time re-commence banking virtually meant the liquidation of the rural and advances to homes section of the State Bank, with consequent heavy loss to •the ~ State and ruin to many primary producers. The letter is now being considered by the hoard of the Commonwealth Bank.

In reply to Mr T. R. Bavin, Leader of the Opposition, Mr Lang said he would make no general statement until the position was cleared up with the Commonwealth Bank.

Mr Lang added that tho Government had nothing to keep back, “and if necessary would appeal to the people and their patriotism.” Mr A. E. Reid (Nationalist) : You arc not game. At ail the branches of the State Savings Bank the old familiar placards are displayed on the doors and windows: “Paymen't suspended until further notice.”

LATER. NO HELP FORTHCOMING. NEGOTIATIONS DEFINITELY CLOSED SIR R. IGIBSON EMPHATIC. United Press Assn.—Elec. Tel. Copyrlgtn. (Received July 29, 11.30 a.m.) MELBOURNE, July 29. There does / not appear to toe any possibility of the Board of the Commonwealth Bank agreeing In any circumstances to the re-opening of negotiations with the Lang Ministry for taking over the State Savings Bank. “ The negotiations have definitely ended,” declared Sir Robert Gibson, tbs chairman of the Commonwealth Bank. SYDNEY, July 29. „ •Consequent upon the withdrawal ctf assistance by the Commonwealth Bank to the Government Savings Bank, the employees of the latter Institution will be rationed forthwith.'