THE COMPETITION BETWEEN THE BANKS.

Inangahua Times, Issue 97, 25 September 1878, Page 2

THE COMPETITION BETWEEN THE BANKS.

Speculating on tho reasons that have onusod tho banks to advertiso against oaoh other, tho Otttgo Daily Times winds up an articlo with Iho following romarks :— " Taking a lighter view of thoso banking annouueomonts, thoro are others again of our commoroial men whoso opinions aro cntitlod to weight, who cannot soo any* thing in tho commercial ntmosphoro to warrant tho opinion that money is hard on* ing to such ait extent as to cnuso any apprehons'on of ftn inoronso in tho rntos charged for advances by tho Bunks. They oxplain awny the present competition for deposits ns being simply tho result of business rivalry botwoen tho Bank of New Zoalnnd nnd tho Bunk of Now South Wnles. It is said thnt tho former Bunk has been pushing its business with somo suqooss into tho domains of tho Australian Banks, and among other things advertised in Sydney nnd Molbourno its desiro to rocoivo moneys on de[osifc account. This, then, is said to have given rise to a desiro for retaliation on tho part of tho Bunk of Now South Wales, and honoo its public announcement in this colony of ' special arrangements ' for deposits. Wo should lileo to be able to tako this light viow of tho xnattor, but wo must confess to a feel* ing of doubt that tho causo lion a little i dooper. Tho Now South Wales loan, unfortunately, hangs fai'o, nnd money has admittedly been tightening, not only in that colony, but throughout Australia for somo time back. In tho faoo of tho ropontod cablo mossngos from Homo as to P tho depressed stato of Australian sccuriy tios, which, no doubt, is only temporary, tho Now South Wnlos Govornmont hayo acted wisoly in keeping back their loan ; I but wo should like to soo tho million and , a-half they nood for presont requirements safely in tho hands of thoir Colonial Trca- ' surer. It may perhaps bo not unreason* , able to ask whothor thoro can bo any con* noction botwoon thoir disappointment in | not gotting tho sum in question, and tho present efforts of tho bank of Now South L Walos to securo Iho floating capital of this ' colony. It wculd b<J interesting to kuow tho oxisting relations between tho Govern* mont of Now South Walos and its loonl ( Bank. Una tho Bank undertaken to supply Iho funds at presont roquirod by tl:o colony, or doos its presont action in bidding for deposits simply nriso from a 1 dosire to seouro money for its own par* ticular requirements outsido of Govern • mont matters P Theso aro questions which under Iho oircuinstanoos may bo fairly askod. Mennwhilo wo must content ourwith tho knowlcdgo thnt our loan is all ' right and trust that wo havo no troublous timo in storo iv tho iutormodiato future."