HOUSE OF REPRESENTATIVES.

Feilding Star, Volume XVII, Issue 55, 2 September 1895, Page 2

HOUSE OF REPRESENTATIVES.

THE BANK OF NEW ZEALAND CRISIS. THIRD READING OF THE BILL CARRIED. [Per Press Association | Wellington, August 31. In Committee on the Banking Bill, Mr G. W. Russell 8 motion to prevent amalgamation of the Bank of New Zealand and the Colonial Bank was lost by 34 to 21, and the remaining clauses passed without material amendment. Mr Wnrd moved the third reading of the Bank of New Zealand and Banking Bill. Mr Mitchelson said the extent of liability to be imposed upon the colony would be .£350,000, as well as a very la^ge un known liability. He asked the Colonial Treasnrer whether any steps would be taken to place the true position of the Bank before the shareholders in London. Mr Seddon said last year it was suddenly represented to Government that if they did not come to the rescue the Bank would have to close its doors. That came as a great shock to Government and there was no sufficient time to acquire information which was necessary, and for not obtaining which they were now blamed. He could not agree to a State Bank that would govern the commerce of the colony. Shareholders now for the first time knew the true position of their property If any assist anc9 was to be rendered to the unfortunate shareholders at nil the proposals of i he Bill woiild give that assistance. He estimated the increasing earning powers of the Bank at a .year. He 9trongiy defended the action of the Government over the BillMr Dutbie strongly opposed the Bill. There was not a penny of solid capital in the Bank ; it was all borrowed money and he had never heard of such a proposal as to float a gigantic bubble of this without any capital whatever. The Hon Mr McKenzie said it was just possible Mr Murray himself had been deceived. Mr Duthie had considerably gone down in his estimation as a business man when he told the House I that no material difference would be felt if the Bank of New Zealand closed its doors. He for one as a member of the Ministry would not again go through the anxiety Government had for the last two years over that institution. The House would have to take full responsibility for what had been done. Mr Pirani said Government supporters were sincere in their action over the Bill. He at any rate had never daring his short political career given a vote in the House which pained him so much as on the present Bill. If Mr Murray had given as correct information last year as was received this year, the House would not have been misled. Mr T. Thompson had supported the Bill without any amendments as he considered it in the best interests of the Colouy. Mr Hall- Jones considered it a certainty they would hear more of this matter in the future. Mr McNab disapproved of the Bill altogether. Mr Morrison said he had supported the Bill to prevent the disaster that would certainly follow the suspension of the Bank, but the Colony had accepted a huge liability, which he was afraid they would hear more of on some future occasion. He regretted the Government had not taken over the institution and made it a State Bank. * Mr E. M. Smith supported the Bill. He was sorry that the proposal to deal with the Globo Assets by means of a National lottery had not received more consideration from the House. Mr Maslin said the House had now either to sacrifice two millions already voted to the Bank or afford it timely and constant aid with a view of steering the institution into a position of solvency. Mr G. W. Russell said the Lands for Settlement Act must occupy a prominent place in dealing with the properties of the Estates Company. ' Mr Geo. Hutchinson said the Colonial Treasurer was a well-known friend of the Colonial Bank, and he had helped it in recess by giving it .£150,000 of public money. The shareholders were not placed in any better position under this Bill than they would be under the re construction scheme. The proposals were all in favour of the wealthy and what he may term tbe overdraft classes. He believed the stoppage of the Bank would very soon have had a healthy and restoring effect on the condition of the colony. Mr Reeves said Government had taken the lesser of two evils in a great national crisis and there was good reason to believe that what they were doing now would be successful. He resented the taunt that Mr Ward was a friend of the Colonial Bank. Other Australian colonies afforded an example of what would have happened if the Bank had closed its doors. Mr Buick strongly- opposed tbe Bill. He blamed tne Committee for not taking evidence to show what wonld have been the probable result of the suspension of the Bank. Dr Newman calculated that when the Bill passed this unhappy colony would have committed itself to the Bank to the extent of over £8,000,000. Mr O'Regan thought if the Bank of New Zealand had a right to demand assistance other banks had the same right, and if that right was recognised what must be the effect on the colony at large. He opposed the Bill. Sir Robert Stout urged that members should refrain from attacking the Bank, which was so inextricably mixed up with the colony, and they should be careful not to prevent the recovery of confidence. The Bank ought not to retrieve itself. It had a large goodwill, which had even now a considerable value. The appointments to the Realisation Board should be absolutely irrespective of politics. Mr Saunders could not support the Bill, because it involved borrowing. Messrs R. Thompson and Crowther spoke against the Bill. Mr Ward replied at 11.25 p.m. He said it was very easy to find fault as many honourable members had done. Some generosity should be shown to those who had the solution of this difficult}' on their shoulders. No better scheme had been brought forward by any other member, and lie regretted the aspersions that had been cast on those who had been trying to do do tbeir best for the colony. The attitude of some members opposite was in distinct contrast to that of the Leader of the Opposition. Members should remember the great strain that had been on Ministers and the members of tbe committee during the last few days. Now as to what he had said to the shareholders in London. He told them he could not promise them another call wonld not be made. Mr Geo. Hutchison was always ready to impute unworthy motives to other members in statements they made. If the two million share capital had been obtained in the first instance there would be no necessity now to apply to the House for more share capital. The Government know, and so did previons Governments, of the weak position of this Bank. The Bank tried pa its own account to get additional share capital in London to enable it to carry on, and it was only when it failed in this attempt that it came to the House for assistance. The Government had been congratulated from all pants of the colony on the action it had taken this year to prevent the Bank suspending, _ and telegrams

from all parts of the country told them they were doing the right thing. He was sorry he had not time to go into the details of the Bill. As to what had been said about his private affairs, he was prepared fcr the member for Palea with regard to thorn whenever he liked. He deprecated the lying statements that had been made about him in the lobbies. Everything had been done in the best interests of the colony, and he hoped the proposals would prove successful. On a division the third reading was carried by 83 to 21 and the Bill passed. The House rose a few minutes after midnight and it was agreed to meet at 7.30 on Monday to receive the Bill after it had passed the Legislative Council. The following is the division list on the third reading of the Bank Bill: — Ayes (33): Buddo, Cadman, Gamcross, Carnell, Collins, Duncan, Flatman, Fraser, Green, Hall, Harris, Hogg, Houston, Kelly, W. Lawry, Mackintosh, Maslin, McGowan, McKenzie, J. MeLachlan, Millar, Mills, Morrison, Parata, Pinkerton, G. W. Russell, W. R. Russell, Sod don, E. M. Smith, Stevens, Steward, Ward, T. Thompson. Noes (21): Crowtber, Earnshaw, Graham, Hall-Jones, Heke, G. Hutchison, W. Hutchison, J. W. Kelly, W. Lang, McKenzie, It. McNab, Massey, McGuire, Mitchelson, Newman, O'Regan, Pirani, Saunders, R. Thompson, Wilson, Tanner. Pairs.—Ayes : Meredith, Buchanan, Carroll, Stout, Willis, Montgomery, Reeves. Noes—Joyce, Larnach, Allen, Te Ao, Bell, G. J. Smith, Buick.