The Banking Enquiry.

Feilding Star, Volume XVIII, Issue 35, 10 August 1896, Page 2

The Banking Enquiry.

o i Per Tress Association) Wellington, Augnst 8. l Mr Booth's examination was continued. ( He thought the appointment of W. Cr; - Foster as manager had been a great , advantage, and saved the Bank many thousand poundu. The books of the ' Bank were responsible for the valuation of £1,870,000. He was not aware of i any loss on the properties in 1895 different from tbat which had been accruing < for some years previous, all of which had been bad years. Could not say whether any sums were written off from ' private accounts bj r the Estate Com- ! pany. Witness then detailed the nego- ' tiation* for purchase of the Colonial < Bank during the session of 189;*). The . negotiations were conducted for the . directors of the Bank of New Zealaud by the President, and thera are no formal written communications between directors to the banks on tho subject. Part of tlio consideration for the Bank of New Zealand taking the properties of the Colonial Bank at book valuo was, that two accounts of £20,000 and £T,OOO were guaranted by tho President. Witness thought tbe Committee should recommend that a provision lie made by which the directors can call upon the auditor to report anything which they think should bo reported to the Colonial Treasurer for the time being, so long as the Bank boro tho relation to the State which existed at present. Mr Montgomery, Was this advance of £-20,000 secured upon the debentures ot the Ward Farmers' Association ? Mr Booth said there had been no writings off iv connection with the advances. Witness said the Bank of Now Zealand had now more than sufficient assets to meet liabilities. The position was more favorable than last year. The Bauk is new doing a safe business. But to keep it sale another auditor was required, and continuous oversight would be kept ovor all accounts. All the colonial banks ! should make better provision for bad or I doubtful debts. Tbe Colonial Treasurer for tho time being should not have any interest, direct nr indirect, in any advance in the Bank, but ho would like to say that he had no knowledge of any shadow of interference ou the part of the late Colonial Treasurer in the affairs of the Bank at any time. The President bad never exercised his veto. Mr Montgomery, Is the colony likely to suffer nil imate less through the bank ? Mr Booth -I think the colony is not likely to loso one shilling, always provided that the management of the Bank is capable and trustworthy, and always provided that tho arrangements for conduct of its business shall not require interference such as is contained in a Parliamentary enquiry of this kind. Tbis Day. The Banking Enquiry resumed thia morning. Mr Booth was examined by Mr Hutchison. Ho g«vo particulars of the retunnf ration paid to the Directors of the Bank mid to the attorneys of the Estates Company iv New Zea Und, and was examined as to the formation of the Estates Co., but could give very few particulars of his own knowledge. In inyesting £150,000 of tlie two million guarantee in New Zealand consuls at 3» per cent, the Directors have tbe approval of the Colonial Treasurer. He did not think the money had como to the Bank by way of depos.rs. He did not know that it came back through the purchase of the Colonial Bank. He could enquire, but thought Mr Hutchison was mistaken. The call of L 500.000 was by direction of the Colonial Treasurer, and he would produce his circular on the subject. No overtures for further assistance were made by the Bank or the Estates Co. prior to August 4, 189-3. Witness did not acquiese in John Murray haviog been sent for last year, neither did he know I by whose authority LSCO waa voted for his expenses.