The Banking Enquiry.

Feilding Star, Volume XVIII, Issue 38, 13 August 1896, Page 2

The Banking Enquiry.

(Per Press Association.) Wellington, August 12. The Banking Committee resumed this morning. A letter was received from Mr John Murray, Sydney, forwarding his sworn testimony, and asking that he should not be forced to attend the Committee's proceedings. Consideration to be held over. The examination of Mr Booth by Mr Hutchison was continued. Witness declined to produce correspondence between the Bank and the Colonial Treasurer regarding the call upon Bank shares. Applications were not in view for the office of general manager of the Bank. The President of the Bank was anxious from the time of purchase of the Colonial Bank that Mr Henry Mackenzie should be appointed manager. At a subsequent meeting Mr Mackenzie's appointment was agreed to at a salary of £1750, to bo terminable at three month's notice. The appointment was by a resolution of the directors, bat witness recorded his dissent from it. Mr Watson's fine was paid out of the fund which had accumulated for directors' fees. Iv reply to Mr Masliu, Mr Booth said the directors of the Bank were trying to realise on trading concerns as soon as possible. He could not give particulars of any writings down in connection with trading concerns. The balance-sheet of the Bank of New Zealand presented to the House was a trustworthy one. From the beginning Mr Watson was very anxious that Mr McKenzie should be appointed general manager of the Bank of New Zealand. In reply to Mr Guinness, Mr Booth said he could not possibly produce the guarantee t'iven for the advances of 1 25, 000. There was an understanding that if Mr Butt, Government auditor, lost or resigned that position, be should be taken back into the service of the Bank of New Zealand. It was quite useless to propose any otner name against that of Mr Mackenzie for the position of General Manager. In reply to Mr Tanner, Mr Booth said he took a similar declaration of secrecy to that taken by Mr Watson. In reply to Major Steward, Mr Booth said he did not know of his own knowledge that the National Bank bad been approached with a view to purchase by the Bank of New Zealand. The Committee then adjourned. This Day. At the Banking Committee Mr Booth was under examination by the Minister of Lands the greater part of the morning. He said the present directors found the past policy of the Bank was impossible for them to continue. The management of the Bank at headquarters, and not the officers of the Bank, was, iv his epinion, the chief cause of the difficulties into which the Bank had arrived. When the Bank first went to the Government for assistance the Government were practically in the hands of those who approached them. Witness absolutely declined to give any particulars as to the purchase of &150.000 worth of New Zealand Consols by the Bank, as he was legally advised the question was outside the order of reference.