THE NEW BANK.

Auckland Star, Volume LIX, Issue 230, 28 September 1928, Page 8

THE NEW BANK.

DISCUSSION IN COUNCIL.

TIME LIMIT .FOR CAPITAL.

(By Tclc§rapli.—Parliamentary Reporter.) WELLINGTON, Thursday.

In the Legislative Council to-day the Hon. V. H. Keed moved that the Council agree to the report of the special committee on the London and New Zealand Bank, Limited, Bill, stressing that all the proposals had been unanimously approved. He said the committee had introduced one or two amendments deemed to be to the advantage of the bill. The clauses had been considered one by one and unanimously accepted by the committee. The proposed company could not start operations until £1,000,000 had been subscribed in shares, and that subscribed capital had to be obtained in two years. The company could then go to flotation and be incorporated. A further safeguard for the public was that even when it had obtained the £1,000,000 capital it could not start the business of banking as specially defined in the bill until £1,000,000 had been actually paid up, a time limit of four yeaers after the date of incorporation being fixed by the committee.

Sir Edwin Mitclielson moved as an amendment that the report be referred back to the committee for reconsideration of the period of four years proposed by the committee for the raising of the paidup capital and of the terms in regard to brokerage and commission charges. He said the Council should not agree to the report without having seen the evidence. The Hon. J. Barr said that notes had been taken before the committee on vital questions, and none of the witnesses had opposed the measure. Tn supporting the bill, the Hon. H. L. Michel paid that he did not think the terms of flotation provided were unreasonable. Sir F. D. Bell referred to the argument that the bill should pass because the bank could not do any harm," and said he had never before heard such a plea made in res-pert of a bill before the < "iinril. They should guard against 'lie danger of the establishment of a weak bank. The committee had not reported that it considered there was need for another bunk, and he supported the amendment, at least in order that tlie Council might know the nature of the evidence given. He thought one million of paid-up capital was little i nougli. and asked what worse could be ['prided for. The Council had a dutv to perform to the country, and should not vote in support of a thing the eudenee on which they were ignorant of. I hey should be a-.-ured that further banking facilities would be of benefit to the countrv.

Sir -lames Allen, who also opposed the bill, *aid he was not convinced that the new bank wa? needed: indeed, a new I'.tnk, he thought, would lie a menace to ihe finance of New Zealand. Tiie pre--111 institution* olTercd sufficient faciI I I i C?.

< ulonel ,T, Smith said the committee had left it to the Council itself to decide upon the principle of the necessity of the i-i eat ion ot a new bank or otherwise. If iho capital wa° forthcoming the bank was entitled to its charter.

The Hon. W. supported the ;i inendment. and ti:o Hon. T. S. Weston

-•aid that, as the -afety of the public was adequately protected, he would vote for the measure.

The motion to refer the bill back to the committee wa- h-t by 9 votes to 22.