BANK OF N.Z. APPOINTMENTS.

Dominion, Volume 6, Issue 1699, 15 March 1913, Page 8

BANK OF N.Z. APPOINTMENTS.

Sir, —Your comments on the reoont appointments to tlio board of tho Bank of Now Zealand will bo much appreciated by a largo section of tlie community who aro distressed becauso of tlie blundering way in which tho Government has handled several matters of importance during their short term of office, thus shaking the loyalty of many of their most staunch supporters and bringing joy to their opponents. Your remarks , will be all the more valued inasmuch as they show that you aro not to bo deterred from administering wholesome rebuke when necessity arises, whether in tlie caso of friend or foe, a course that must in the long run be productive of good. Tho resuscitation' of Mr. Harold Beauchamp some months ago was an inexplicable proceeding; further, it was attended by a degree of weakness quite unpardonable. That a capable Government should have submitted to dictation on tho part of Mr. Heid—a consistent follower of their predecessors—who stipulated as a condition of his resignation that he should nominate his successor, thus relegating its responsibility to an outsider, is truly astonishing. The whole matter resolves itself into this: Mr. Beauchamp appeared at the board as tho nominee of Mr. Re id, the Government meekly approving. The New Zealand correspondent of the "Banking Record" put's it thus: "Mr. Reid largely controlled the situation." Tho question is: Why should ho ? Meanwhile, however, the Government had an opportunity of retracing its steps, after, it is generally understood, having received considerable enlightenment, but with a perversity difficult to understand, Ministers have confirmed for * a further period of two years an appointment that, I venture to say, is as unpopular as it'is unaccountable. By tho way, in a Parliamentary paper laid on tho table of the House last session it appears that Mr. Beauchamp, writing under date February G, 1012, Says: "In consequence of protracted ill-health it would not bo possible for mo to continuo my connection 'with tho bank after the above date." Apparently this difficulty has been happily overcome. As regards the second appointment, you very properly allude to the introduction of the dangerous element of provincialism into the constitution of the _ board, a feature the overlooking of which reveals n complete absencei of statesmanship, and discloses instead tho desire to exercise patronage, the curse of politics. In justification of this nomination wo aro told that tho commercial communityof Auckland had a finger in the pie. Naturally enough it will bo suggested that when any. section of the public seeks representation in such a direction as this there is some object in view, What is that object?, Is it the hope of securing greater favours for one locality? If so,'it needs no words of mine to emphasise-tho danger of constructing the board of such an • institution .on such lines, and you have sounded a strong note in referring to it. Personally I do not know anything of tho new nominoe. lie may be, and probably is, a very capable man, but I say unhesitatingly that it seems the acme of absurdity to drag a gentleman well on inyears all tho way from Auckland to attend board meetings. I say nothing of the extra expense to the bank arising out of long-distance appointments. In fliis connection I would point out that the interests of the bank, its constituents, and tho country generally would bo better served by a board composed of the best and most independent men available within such distanco as would make them accessible at all times, and the questionable clement to which you refer would thus be excluded. . _

Next sessian bank legislation must bo enacted in view of tho early expiration of the Government guarantee, also to sanction an increase of shareholders' capital, and it is 1 said that tlio directors will ask to include in tlio measure to bo introduced somo provision for increased remuneration. It is to bo hoped that this will be stoutly and successfully opposed. Tlio usual plea of "heavy responsibilities" and "arduous duties" will be put forward. It is truly surprising the extent' to which tho public is gulled by this oft-repeated cry. I say without fear of contradiction that when directors have; a true concept lion of their duties, and realiso' that.thoso duties aro confined within the limits of the board room, and witTrin that , space alone, outside of which they aro, so far as tho public is ' concerned, unknown quantities, there will be no occasion for putting forward pressing requests for further remuneration. When directors, by way of magnifying their importance, aro to bo found gadding all over the country at heavy expenso, often with an eye to "number one," making so-called inspections of branches—which is entirely t'lic duty of tho executive—then any claim for increased lionorariuui should be scouted. In tlio caso of tho Bank of New Zealand, tho directors are now very adequately remunerated, and it is to be hoped ■they will have tho decency to efface themselves in,such a matter as this, and use such spai'o funds as may be at' command to improve tlio condition of tho officials, who aro tho real workers, and in many cases much underpaid. Officiousness 011 the part of a directorate of any concern inevitably leads to weak administration, and tho relegation of capable men to obscure positions. A strong executive will always keep matters in proper placo and mako it clear to all .concerned that administration; and direction are absolutely distinct functions, a fact' which, if disregarded, will lead to confusion within and dissatisfaction without.—l am, et«., BANK.CLIENT.