PARLIAMENTARY.

Feilding Star, Volume XVII, Issue 52, 29 August 1895, Page 2

PARLIAMENTARY.

HOUSE OF REPRESENTATIVES. DISCUSSION ON BANK COMMITTEE REPORT. BANK OF N.Z. NOTES MADE LEGAL TENDER. (PEB PRESS ASSOCIATION) Wellington, August 28. The House met at 8.30. After the reading of the report, the Hon. Seddon said the course Government considered best in the interests of the House and the country was this — That the Colonial Treasurer should be allowed to move the second reading of the Bill, and in doing so he would fully explain the provisions of the measure. The debate would then be adjourned until tomorrow. It would be seen from the report that the institution was just solvent, and two millions guaranteed by the colony were intact. In order to provide against all contingencies Government would, to-morrow, issue an Orderin- Council under the Bank Note Issue Act to make the notes of the Bank of New Zealand legal tender. That would at any rate ensure the position of the Bank until such time as the House decided whether or not it would come to the rescue of the Bank. The House would, therefore, see that Government did not wish to force this matter through. He desired to point out this, the Government was in no way responsible for the present unsatisfactory state of affairs in connection with the Bank. Mr Mitchelson regretted the debate was not to be wholty adjourned till tomorrow, as members might to-night make speeches damaging to the Bank. He approved of the proposed Order-in-Council. Mr Seddon said he did not fear what members might say on this matter in face of the committee's report. The House theu went into committee to permit the introduction of the Bill. Mr Geo. Hutchison and Oapt. Russell urged adjournment until to-morrow. Mr Seddon said it would be unfair to the committee, to the Bank, and to the people of New Zealand to adjourn with-^ out any explanation of the Bill noyHbfe^"^ fore the House. That was why he could not agree to the adjournment. Duiing further discussion Mr G. W. Rnssell declared it was well known throughout the country that one, if not more, of the Australian banks had been doing its best to injure the Baukof New Zealand and pall it down. Mr Thos. McKenzie characterised that statement as absolutely and utterly incorrect. Mr Seddon pointed out that the moving of the second reading would not affirm any principle. If it went to the country in the morning that the House had not allowed the Bill to be brought on it would be detrimental to tlie interests of the Bank. Mr Buchauan thought the Premier was acting contrary to the best interests of the country in forcing on the second reading to-night. Members should peruse all papers before they would be able to intelligently follow the Colonial Treasurer. Mr Bell said Mr G. W. Russell's remarks might be construed as applying to him, but he had had no communication with any banking institution, and anything he said was not inspired by any such institution. Mr Ward pointed out that the assets „ of the bank in excess of liabilities in this colony alone were £2,450,000. This showed clearly that the institution was solvent. The Bank was in a position to make a proper declaration that its assets exceeded its liabilities, and, that being the case, he accepted his full share of the responsibility of the course proposed by Govornment. Mr Geo. Hutchison contended that the assets of the Bank as a whole, as compared with its liabilities, showed a deficiency of £376,890. He strongly protested against the colony guaranteeing every note of the Bank of New Zealand. Mr Seddon : You may protest, but we will do it. Mr Seddon proceeded to say that in guaranteeing the note issue, Government was only carrying out the law, and would have the support of the country in the step they were taking. The point was that the assets must exceed the liabilities, and the Bank of New Zealand complied with this provision. Further discussion took place, in the course of which Mr Bell said the Bank was doing what it did last year. It was driving the Government and the House at the point of the pistol, and Government was surrendering. Mr Duthie did not believe there was any necessity to guarantee the notes of the Bank, as "the Bank was able to meet its engagements. Mr Ward said there was no doubt the assets of the Bank in the colony were largely in excess of the liabilities. There was no want of money in connection with the Institution. There was rather a superabundance of money, and the very fact of the Bank having such large sums of money on deposit made the position all the more serious, and fully warranted Government in guaranteeing the note issue to preserve the credit of the institution. As to last year's guaran* tee under similar circumstances he would dp the same thing again. Had they not done it they would have lost much more than two millions. If a great crisis were to happen in connection with the Bank of New Zealand, his strong belief was that it would extend to some of the other large Banking Institutions in Australia more than they thought. Mr Mitchelson at 11.20 appealed to the House to allow the Treasurer to move the second reading of the Bill as it would shortly be twelve o'clock, after which he would be unable to do so Mr Geo. Hutchison said that in resisting this speculative proposal to guarantee the notes of the Bank he was actuated solely by the dpsire for the good of the Colony and not; out of any animus to the Bank itself. Mr Ward said the Bank could at the present moment meet the whole of its engagements outside the colony ; in Australia and in England the excess of assets over liabilities was £598,366. The statements of those members who said the Bank was not in a solvent condition were absolutely incorrect, After further discussion, Mr Ward (speaking a few minutes before midnight) said it was very much to be regretted that a few members whose action did not meet with the concurrence of the majority of members on the other side of the House should have taken up such au attitude as they had done tonight. They had deliberately prevented him from moving the second reading of the Bill and giving an explanation which. was necessary for members to take an unbiassed view of the matter. Sir Robert Stout said Mr Ward was correct }n stating ihere was ample assets over liabilities as required by the Bank Note Issue Act. Mr Seddon said that midnight having passed they could not now take the second reading. He urged the House to accept the introduction without delay and fix a date for the second reading. ! The Bill was read a first time, and, after Mr Ward made a statement, the House adjourned.

The following proclamation was issued iv a Gazette Extraorcliuray at eleven o'clock to-night :— " In pursuance and exercise of the power and authority vested in him by " The Bank Note Issue Act, 1893," (as amended by the Bank

Note Issue Act, 1893, Amendment Act, 1894, and the Banking Act, 1894,) His Excellency the Governor, being satisfied that as between the Bank and its creditors its assets in the colony exceed its liabilities in the colony, and acting by advice and consent of the Executive Council of the colony, doth hereby proclaim and declare that notes payable on demand by the Bank of New Zealand— and noginore hereafter to be issued, circulate^ or re-issued within the colony of New Zealand under any lawful authority in that behalf— shall, during the period commencing on the 29th day of August now instant and continuing until the second day of September next ensuing, be everywhere within the colony good aud legal tender of money to the amount therein expressed to be paid."