BANKERS' CHARGES.
As a result of this great fall in Money Rates the pub- lished rate of interest on banking deposits has fallen to per cent., and inasmuch as the published nominal rate of bankers for advances is still 5 per cent., it is this great discrepancy between what the banker ap- parently gives in the way of interest upon deposits and what he charges for loans which furnishes the main ground of the present attacks. If these attacks were fairly conducted with an endeavour to show the public the real nature of a banker's business there would not perhaps be any need for dealing with the matter, but because the attacks are not in my judgement fairly con- ducted but are rather in the nature of a vendetta it seems well to say something further on the matter. 1 dealt with the subject so fully, however, in the Spectator of July 23rd last, that I shall now only set out a very few general facts. The first very real and obvious fact is that bankers arc actually having a hard fight to maintain previous profits, so that it scarcely looks as if the low rate they allow on deposits were an advantageous circumstance for them. And why . is this it may be asked ? In the first place, and because of the very fact that in these difficult times they have over rather than under lent to industry; they have had to take a very practical share for many years past in the industrial 'depression in the shape of actual losses on loans made. In the second place, bankers have to give first Considera- tion to their responsibility to the depositor. The com- plete confidence which at present exists in the minds of the depositors in this country rests upon the sure belief of the holders of current accounts or of deposits that he can count upon receiving back the whole of his money intact. Yet how can the hanker possibly give this assurance without taking precautions that the money • shall be available ?
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