PARLIAMENTARY.

Feilding Star, Volume XVII, Issue 54, 31 August 1895, Page 2

PARLIAMENTARY.

HOUSE OF REPRESENTATIVES.

THE BANK OF NEW ZEALAND CRISIS. (Per Press Association.) Wellington, August 30. The House met at 2.30 p.m. The House went into Committee on the Bank of New Zealand and Banking Bill. A proposal that the proceedings in committee should be reported in Hansard was opposed by the Government and lost on the voices. - " " On Clause 1, Mr G. W. Russell moved that the short title be altered so as to make it " State Bank of New Zealand Bill." If his amendment was carried he should move that progress be reported in order to give time for the whole Bill to be recast. Mr Ward said he could not accept the amendment. After a long discussion the Chairman, in reply to a point raised by Mr Seddon, xuled that if the amendment involved alteration of the appropriations in the Bill it could only be inserted with the consent of the Crown. The amendment was lost by 45 to 17, and the clause passed. Clause 4, empowering the directors to create £500,000 of new capital in preferred shares, provoked a long discussion. ! Mr Geo. Hutchison asked what prospect the Bank had of repaying thiß money. Mr Ward said the fullest information on the point had been given on the second reading of the Bill. Mr Geo. Hutchison moved that the words " £500,000 " be omitted from t!ie j clause, bnt the words were retained by I by 38 to 22, and the clause passed. Clause 7, allowing preferred shares to be issued to the colony in exchange for Government securities, was altered by the addition of the words "provided that any premium received by the sale of such debentures, stock or securities shall be set aside as a reserye fund for the Bank of New Zealand and invested accordingly." The House rose at 5.80. The House resumed at 7.30, in -CODi-" i mittee on the Bank Bill. Clause 8, giving power to the Bank to re-jmrehase preferred shares — Mr Ward suggested that power should be given to the Bank within five years of the issue of preferred shares to repurchase them. Sir 11. Stout suggested it should be seven years. Mr Seddon said they might make it six as a compromise. Mr Millar objected to this alteration, and said the interests of the colony were now being sacrificed to the interests of shareholders. Eventually Mr Ward's amendment was agreed to, six years being inserted instead of five. A proposition to strike out clause 10, which makes it incumbent upon the directors of the Bank to call up the final third of the reserve liabilty, was lost by 57 to 7, and the clause retained. Clause 12, release of the million invested under the Bank of New Zealand Share Guarantee Act, 1894— Mr G. W. Russell moved an addition to provide that after payment of all liabilities of the Bank to the colony under the present Bill, all the earnings of the Bank after payment of a dividend of 5 per cent to shareholders, should be set aside as a sinking fund to repay to the colony the £2,000,000 of guarantee advanced nnder the Act of 4894.— L05t on the voices and the clause passed. Clause 15, providing that one of the directors of the Bank shall forthwith resign, and a director to fill his place shall be appointed by the Governor, caused a long discussion. — The clause was altered on the motion of Captain Russell to provide that the director to be appointed, by the Governor shall retire from office three years after election, but shall be eligible for re-election.— The clause was also altered, on the motion of Mr T. McKenzie, to provide that no person who is president, manager, or director, of any other Bank shall be eligible to be President of the Bank of New Zealand. On clause 49, which fixed the price of estates to be managed by the Realisation Board at £2,731,000, Mr Geo. Hutchison moved, as an amendment, that the price be £1,879,000, which was the value esti. mated by the committee. Mr Ward could not accept the amendment. It was necessary to retain the price mentioned in the clause in order to prevent a large deficit. The colony was not attempting to guarantee a bogus valuation. Mr Hutchison's amendment was lost by 40 to 19. On the House resuming at 11 o'clock, Mr Ward moved that progress te repot* ted in order to remove the suspension of the Standing Orders, so that the House might sit on Saturday. Mr Seddon said if the Bill was put through Committee to-night he should be prepared to adjourn till 10 next morning for the third reading of the Bill. Eventually Mr Ward withdrew his motion, the Speaker having intimated that the House on its rising could adjourn till Saturday. At 1 a.m. 23 clauses had been carried. Dr Newman moved a new clause ap. plying the Disqualification Act to all appointments by the Bank and Estates Company.— Lost by 31 to 19. G. J. Smith moved a new clause that neither the Bank nor the Estates Company shall carry on any trading businesses. Mr Seddon said this proposal was brought forward at the instance of private companies who were in competition with the Estates Company. After considerable discussion Mr Ward suggested as a compromise that the clause should be made general, and the time fixed for seven years. Mr Smith accepted the compromise and withdrew his clause on the under* standing it be inserted in the Council. In committee on the Bank Bill, G. W. Russell's motion to strike out that por« tion of clause 36 that allowed the amal« . gamation of the Bank of New Zealand and another financial institution, was debated at great length. Mr Ward said this clause embodied oue of the most importaut portions of the committee's .scheme, and to negative it meant the reconsideration of the whole scheme. Amalgamation was one of the strongest recommendations of the Bank's directors, and its rejection would put a different aspect on the whole question. He suggested an amendment providing that the contract for the purchase be subject to the approval of Parliament. Eventually Russell's amenndment was lost by 34 to 24. On Mr Seddon's motion the clause was altered to provide that before the amalgamation could be ratified, Parliament should have an opportunity to dissent from it. The remaining clauses were passed without material amendment. A new clause was added extending the operations of the Bank Note Issne Act, 1893, for one year, A new clause was added that no Official or Director of the Estates Company or Realisation Board be allowed an overdraft. This finished the Bill in committee, and at 8.30 am. it was reported as amended. The House then adjourned, the third reading being fixed for 2.30 p.m.

Hall-Jones, Heke, Hutchison, W. Kelly W. Lang, McKenzie, R. McNab, Mere dith, Mitchelson, Montgomery, G. W Russell, Saunders, G. J. Smith, Steward Tanner, Thompson, R. Wilson. Noes (34) : Cadman, Carnell, Carroll Collins, Duncan, Flatman, Fraser , Green Hill, Harris, Hogg, Houston, J. W. Kelly Mackenzie, Mastin, Massey, McGowan J. McKenzie, McLachlan, Millar, Mills Morrison, O'Regan, Parata, Pere, Pinker ton, Pirani, Reeves, Russell, Seddon E. M. Smith, Stevens, Ward, Thompson Pairs.— Ayes : Allen, McGuire, Duthie, Lawry, G. Hutchison. Noes : Guinness, Mackintosh, Willis, Stout, Buchanan.