PARLIAMENTARY.

Feilding Star, Volume XVII, Issue 56, 3 September 1895, Page 2

PARLIAMENTARY.

« BANK OF NEW ZEALAND CRISIS. THE BILL BEFORE THE LEGISLATIVE COUNCIL. THIRD READING OF THE BILL CARRIED. (Per Press Association.) Wellington, Sept. 2. Hod. Mr Rigg proposed, as an amendment. That the Bill be read a second time this day six months in order that time may be given for the consideration of proposals more fair and just to the colony. Hon. Mr Ormond protested against the undue haste that had characterised the whole proceedings in connection with the Bank. The colony was taking a very large liability in connection with the assets, and that there would be a large deficiency for the colony to meet was certain. The Bank was starting under the most favourable circumstances. It was a perfectly safe institution for the public to do business with, £ 'and the colony had made it safe. In committee he would object to the colony being placed in the position of being proprietors of the bank but be would support the amalgamation proposals, as he was convinced that banking on proper lines was overdons in New Zealand. Hon. Mr Montgomery said that what had actuated the Government last year was the desire to prevent widespread disaster. As to the future prospects of the Bank, he believed that if it confined itself to purely banking business the colony would not lose a single penny. Hon. Mr Stevens thought if there was any doubt as to the status of the President of the Bank it should be set at rest before the session closed. It was a question whether those who said with a light heart " Let the Bank go " fully realised what this meant, and, besides,, if the Bank had gone into liquidation, be doubted whether the colony would have recovered any of its guarantee money. < It was utterly ridiculous for the Bank to be wandering about in the neighboring colonies looking for profits, knowing the dire results that had followed previous transactions in Australia. , Hons. Whitmore, W. C. Walker, Bolt, and Scotland, also spoke, and at 5 p.m. the Council adjourned till 7*30. Hon G. McLean quoted figures to show the Bank was exactly solvent, and that the .£2,000,000 guaranteed last year was intact. He believed if the Bank was wound up the colony would lose the whole of the £2,000,000, while other losses might occur which it was impossible for anyone to foretell. He concurred in the decision of the committee that the Bank must not be stopped, and proceeded to pay a high tribute to Mr Ward for the moderation he bad shown" at Home. It was unfair to a purely colonial institution like the Colonial Bank to bolster np another institution with Government money and prevent the other institution from malting a living. It has been said in the other branch of the Legislature that the Colonial Bank was as rotten as the Bank of New Zealand, but the hon. member who made that assertion forgot that the Bank he slandered was supported by ye ry many of his constituents. It would be seen when negotiations for amalgamation took place whether the Colonial Bank was rotten or not. The Bank of New Zealand had written off £3,608,000 of bad debts, and yet in spite of this the Colonial Bank had been able to live alongside it. The Colonial Bank bad carried on a fair banking business, and if it were wound up to-morrow the shares would realise the market value. In time of need the Colonial Bask bad come to the assistance of the Colony and yet Government took away public business from it. The Colony should shield the Bank from the slanders that were hurled at it. The Colonial Bank had carried on its business throughout with credit to the colony. Hon. Sir P. Buckley, in the course of his reply, said Government had taken Parliament into its confidence on the very first possible occasion, but Government could not have got the necessary information earlier than it did. As to the Hon. Pharazyn'B statement that they were warned by eminent bankers, he would ask him if he would take advice from his enemies? He denied that the Government had any desire to bolster up the Bank of New Zealand if its stoppage would not injure the people of the colony. At 9.30 p.m., the Council divided, when Hon. Bigg's amendment was rejected and the second reading carried by 25 to 4, the noes being Hons. Reynolds, Shrimski, Rigg, and Macgregor. The Bill was committed forthwith. In clause 6, Hon Stevens moved an amendment hostile to the Crown be* coming shareholders in the Bank. The amendment was rejected by 18 to 5, and the clause passed. Clause 8, giving the Bank power to repurchase the preference shares, was retained by 19 to 4. In Committee on the Bank Bill, after the supper adjournment, the Speaker ruled that as the income of the Realisation Board did" not come into or out of the Consolidated revenue, clanse 31 could be amended. On division Mr Bowen's amendment, increasing the salaries from £1000 to £1500, was carried by 23 to 2. In clause 37, making the purchase of another Bank conditional on ratification, Mr McGregor moved to excise the proviso setting ont how the approval of Parliament was to be obtained. He strongly objected to tbe provision that the contract should be deemed to be approved by Parliament unless a resolution disapproving of it was passed by the other House. It was improper that the onus of expressing disapproval should rest on other than the members, of the Government. After considerable discussion Mr McGregor's amendment was carried by 12 to 8, and the whole proviso 'setting out that the contract must be approved by Parliament was sir atk out. Mr Bowen then moved a new proviso to the effect the contract must be approved by the Governor in Council. Agreed to on the voices. The clause prohibiting the directors and the officials of the Bank and Estates Company from obtaining overdrafts was struck out by 14 to 9. The new clause prohibiting the Bank at the expiration of seven years from carrying on trading business was rejected on tbe voices. At lam. the Bill was reported from Committee, and the third reading agreed to on the voices, and the Bill passed at 1.20 a.m. The Council rose till 11 a.m. tomorrow.