THE LAST LOAN AND THE BANK OF NEW ZEALAND.

Auckland Star, Volume VI, Issue 1662, 16 June 1875, Page 2

THE LAST LOAN AND THE BANK OF NEW ZEALAND.

(To the Editor of the Evfniso Star.) Sir, —If the information furnished by your correspondent at Wellington is correct, lelative to the rate at which the proceeds of the four million loan are deposited with the Bank of New Zealand iv London, there i 3 another grievance awaiting enquiry and redrofs. The proceeds of that loan are said to be deposited at 2i- per cent., the colony paying 5 per cent. It would be deemed incredible that such a one-aided arrangement should be made by those who have the control of the public funds, if we did not know the overwhelming power exercised by the Bank in question, fro wonder is 13 able to go over to Australia and outbid older and wealthier institutions in the competition for business. Look for a moment at the financial pietuie hire, and compare it with the assumed action of the Government in disposing of the colonial funds in London. In New Zealand there is a iierce competition over money, and the other b^nks are bidding 7 per cent, for large sums at a year's deposit, The Bank of New Zealand is qnietiy enjoying the game which it has set going, and all the while getting enormous sums of colonial money in London at about one - tbird the price it is worth here. Local institutions are all very well, but they may become great evils if local influences are brought to bear to avoid fair competition, and the colony is therefore mulcted for their especial benefit. This is no me-re abstiact question. If the information with which you have br:en furnished is true, it means that the colony ia receiving many thousands a year les3 on a given sum of money than it is paying, and this in spite of the fac£ that the motipy might be lent to tha other Banks doing business in New Zealand at &n actual profit. It is a question that concerns every taxpayer, and we can only hope that Sir Geo. Greyj who is understood to be keeping a keen eye over the proceedings of the Government, will elicit mote information when the Assembly meets. There are now three socalled "local" Banks in the colony Why not allow the Greneral Government accounts to be Eubumtsd to competition. —lam, dtc, Fair Play.