THE HOUSE.

Dominion, Volume 6, Issue 1847, 5 September 1913, Page 4

THE HOUSE.

Tho Houso of Representatives met at 2.30 p.m. ! I ' THE NEW BANK. NOTE ISSUE DISCUSSED. . Mr. A.'M.': MYERS (Auckland East) moved the third reading of the Commercial Bank of' Australia (Limited) Bill. Sir. H. G. ELL (Ohristchurch South) said that he had never advocated- a paper currency, but considered that'tlio banks should be authorised to expand their, note ksue on a Strictly guarded scale in times of .financial stringency. Sir. J. I'AYNE (Grey Lynn) said that the Bill. before the House would only add one moro bank to the ring that existed in, this oountry. He urged that the foundations of a State' Bank should jbo laid. ■ - ■ ■ ) SIR JOSEPH WARD (Awarua) said that, it would bo a mistake to suppose that anyone could issue notes by having a sta'all amount of security, and so gradually, build up'n.fortuno for themselves. Against every note issued there must be either £1 worth of gold or some other equivalent public security. The amount of gold reserve.hold against note issue in this country, for a number of years had been about six times beyond what the law required. Thai being, so, if a crisis arose tho note issue could be readily increased. One item of expense in connection with no to issue Ms the'losb of interest which, otherwise, would be cariwd upon tlie'amount heliHn bullion. By law.','the" banks had to liold gold or public securities in the proportion of £ for £ to the note issue. One-third of tho security had to'be held in coin.. Ho had looked-into the question-*jf a State note issue 'time and again, and doubted Whether it lad produced good results in . Australia'. An opinion that it was responsible for a financial tightness in the Commonwealth ' was at -present boing closely examined by : some of the most thoughtful ihen over there. • Replying to an interjection by-Mr. I'ayne, Sir Joseph Ward expressed the opinion that suoh a departure as the establishment of a State Bank could nov<Jr be taken in this country while the present between tho State and' the Bank of' New Zealand existed. Mr. Payne: Why; not extend'the 'operations of that institution P An lion, momber (disgustedly): Oh, shut up I . ' Sir Joseph Ward, in oonoluding. said that he .thought agricultural banks might be established m this country on a limited :but effective basis. Mr. A. SI. MYERS (Auckland East) .said'that an-examination of the banks' finances would show that Now Zealand need Jiave no apprehension as to the amount of note issue. In actual fact the banks did not issue moro than thoy were entitlod to issue, but a great deal less. Ho quoted figures to Show that *tho banks trading in New Zealand wore very strong financial concerns, paying very generous dividends. When- tho question was put Sir. Payno called "No" very loudly. members remonstrated. Sir.; Vigor Brown said: "Don't waste our time," 'and Sir. Colvin said "You won't get' a toller." Whereat Sir. I'ayne declared, "I'm going to liavo a division if I havo to go into tho lobby by myself." Mr. Payne found that ho could not have a division, because ho could not get a member to act as teller -with "him, which moans that he was tho only opponent of tho Bill. ' ■ Tho third reading was therefore agreed to on tho voices, and the Bill passed. ' THE EPIDEMIC IN WAIKATO. Sir. J. A. YOUNG (Waikato) asked the Minister for Public Health whether his attention had been called ti> the cry of Natives in infected districts in Waikato for • more medical assistance. He wished to know whether the Slinisttir had inquired into tho facts concerning a recent appeal by the Natives to the Hamilton Borough Council. The Hon.. R. H. RHODES (Minister for Public Health) said ho had received 110 communication from the Borough Council at Hamilton. Tho statoment of tho Natives that they l needed medical nssistanco had, _ however, been brought under his notice, and lie immediately telegraphed to find out whether it was an accurate statement. Ho had ' ascertained that it wan totally incorrect'. He had received a letter from Dr. Douglas at Hamilton to the effect that the Waikato was almost clear, and that tho prospects of an early end of the epidemic were particularly bright. ROYD CARLICK INQUIRY. The Hon. A; L. HERDSIAN, for the Hon. J. A, Millar, chairman of the Boyd Garliek Inquiry Committee-, moved that an extension of 14 days within which to report be granted to the committea. Slt. G. W. RUSSELL (Avon) asked what the neoessity was for such a long extension and whether the inquiry could not be brought to an end at a very much earlier date. The Hon. A. L. HERDMAN said that ho had simply moved the motion on behalf of the chairman of tho committeo. Every effort was being mado to bring tho inquiry to a speedy termination, • consistent with a desire to bring out tho truth. . MAGABTHY E9TATE OONTRACT. AGGRIEVED CONTRACTOR, The PvMc Petitions Committee reported! upon the petition of Johann H. Meyer, {milder aid' contraflt-or,* ot Wellington, for. compensation, for. loss of a ,

contract ik> erect a building for the Macaithy Trustees, his tender having been declined in spito of tho fact that it 11713 considerably the lowest. Tho report read: "That in tho opinion of the committee this petition should be referred to tho,-Government for favourable consideration, and that tho trustees of the Macarthy Estate be urged l to make searching inquiries with regard to tho letting of tho oontract." Mr.' E. H. CLARK (Chalmers) said that the fact that the tender sent in by Mr. Mover, though the lowest, had been turned down was going to seriously nffeot his reputation in Wellington. Mr. Moyer had called Mr. Chatfield and Mr. Clere, 'both of whom were first-class architects, wnd they had 1 agreed in stating that Mr. Meyer was a capable and trustworthy builder.. The Government should make thorough inquiries into this position, because Mr. Meyer was £2of below the next tender, and ■ Mr. Dawson (the Macarthy Estate architect) had stated that if Mr. Meyer's tender had been accepted he would llavo had to arrange for special supervision of tho work. Mr. Meyer had incurred loss, because on inquiry at tho bank he had ascertained that Mr. , Dawson had actually cashed his (Mr. Meyer's) deposit cheque, and believing that ho was going to get tho contract, he had abstained from tendering for other work. It. seemed to him that Mr. Dawson had been very unfair to this contractor, and in the inquiry before tho_ committee ho had failed to call any evidence to substantiate his remarks about Mr. Meyer. ■ A WELLINGTON BILL. At 4.35 p.m. the House went into Committee upon tho Wellington City Empowering and Amendment Bill (Mr. Herdman), which was reported , one minute later without amendment. The Bill was then read) a third time.