The Bank of New Zealand Call.

Feilding Star, Volume XVI, Issue 177, 26 January 1895, Page 2

The Bank of New Zealand Call.

o (Auckland Herald Correspondent.) London, January 14 The unwelcome call of £3 0s Hd on the part of the Bank of New Zealand is still a prominent topic of conversation in city circles. A very fair and clear statement of the case — so at least it seems to rue — is given by the Financial News, whicii after a careful analysis of the case on both sides, ends by a complete endorsement of the action taken. It is alleged that oue very large shareholder in London has obtained an opinion of counsel that the call is illegal and cannot be enforced. But the Financial News points out that this amendment of the deed of settlement was one conditiou on which the Government came to the the rescue of the Bank, aud so averted a call of not £3 6s 8d but £10, which would have been due without any possibility of question, had the Bank been forced into liquidation. In the opinion of the Financial News, no such limitation of calling power as existed iv the settlement deed was [ transferred to the Act of 1894, which ["says plainly that of the £10 reserve liability due in a certain emergency one third shall be available without that emergency occurring." To resist a call, which is one of the conditions ou which they have avoided a call threefold larger and a heavy loss, is in the opinion of tlie same financial organ " like the case of a man who has been saved from drowning begrudging a suitable reward to the person who came to his rescue." So though the shareholders are tendered the heartiest sympathy iv the unexpected demand which has been made upon them, they I are advised to be thankful matters are , no worse.