The Feilding Star. THURSDAY. APRIL 6, 1893. Another Great Bank Failure

Feilding Star, Volume XIV, Issue 123, 6 April 1893, Page 2

The Feilding Star. THURSDAY. APRIL 6, 1893. Another Great Bank Failure

A fkw clays ago it was announced that the Associated Banks in Victoria had decided that all the institutions should act unitedly in rendering each other assistance if required. Tt was also stated that the Government would co-operate. Writing on tl»> subject on March 18, we inferred from this precautionary measure that in the near future a monetary crisis was anticipated, and we al.io concliulecl that the best possible means for mutual protection and assistance had been taken by those who had the most to lose, and were the most competent to guard their own interests first, and tho-iv of the public afterwards. Tele-

I grams from Melbourne received yester I day, confirm our opinion as to the probability of a monetary crisis, but i they also show that the Associated Banks were not strong enough to support the Commercial Bank of Australia which has suspended payment. It would .ippear that all the money the Associated Banks could spare amounted I to the comparatively small sum of two j millions, while not a word is said of '; the Government having, in any shape or form, even offered to assist. The reasons, no doubt, were the Associated Banks were unable or unwilling to risk any more than this amount, while the Government had only undertaken to assist the Associated Banks as a whole. The consequence was that the unfortunate Commercial Bank has been allowed to go to ruin. In our telegrams published to-day full details are given of this terrible calamity, therefore we need not reiterate them. The only conclusion the public can or will draw from i his failure is, that neither the Associated Banks nor the Government have acted up to the spirit of their promises of mutual support, on the very first occasion such promises were put to the test. After reading the usual half-yearly report of the Colonial Bank of New Zealand the President, the Hou Geo. McLean, said: "Wo cannot regard the depression and the state of the financial markets in some of the neighbouring colonies without regret. We, as a bank, are fortunately not interested except so far as regards the welfare of this Colony, which must to a certain extent be affected. In this Colony we have much to be thankful for. The harvest, a fairly bountiful oue, is well garnered, and although the prices of some of our staple products are not what wo could wish, tho freezing, dairying, and manufacturing industries are going on successfully. The prices of wool and kauri gum appear to be on the ri&e, and I may say the outlook gonorally is encouraging, and the Colony making fair progress. Wo cannot forgot that a few years ago we, as colonists, had to face a depression and difficulties cf no ordinary type, now fortunately surmounted- 1 have no hesitation in snying thnt our friends in the neighbouring colonies will meet their difficulties with tho same energy i\nd determination that wo showed, and that they will shortly emerge triumphantly I have no fear." These remarks only confirm tho general impression that Now Zealand is now one of tho most prosperous countries in tho world, ami that there is every prospect of a brilliant future before her.

Tiik ratepayers in No. 2 Ward of the Polmngina Road District .-uv rciuindeil that the poll for the proposed loan will be taken to-morrow at Mr Adsctt's mill. On this subject the Manawatu Times says : — .Should from any cause the poll not be carried, the alternative would be that a receiver would be placed in charge of the Board's affairs, so that the contractors could be paid. This would involve much additional cost to the Hoard, and considerable vexation to the ratepayers. Therefore it is just as well that the alternative should be thoroughly understood.

In connection with the point raised by the law officers of tho Crown, anent the loan necessary to pay for tho construction of the Aorangi bridge, we enter our protest against the Manchester Iload Board beintf held solely responsible for any errors or omissions made. It was understood, at the time the commission was held, that the Manchester Iload Board should bor row the required amount under clause 16 of tho Local Bodies Loans Act, 1886, and the words " the local authority " were interpreted to mean the Manchester Iload Board, including the Manawatn Road Board, tho Feilding Borough Council, and tbe Manawatu County Council. The law officers bave only shown that the words mean " each " local authority interested. The mistake was one easily enough made and when discovered the Mayor of Feilding at once remedied it as far as the Borough was concerned. The Manawatu Road Board have now exhibited a spirit of obstructiveness and have written to tho Manchester Road Board demanding to be informed why the tacit agreement entered into at the time tbe commission was held, has not been adhered to. The understanding really meant this : That each local body should either pay its share of the loan to tho Manchester Road Board direct within three months of the date of completion of the work, or, if the last named body raised the whole of the money, tho others were to pay interest on the name pro ruin. Now that it has been discovered each local body must raise its own share of the loan llit-y should accept tho inevitable with a good grace. No good object can be attained by adopting any other course.