Legislative Council's Banking Report.

Feilding Star, Volume XVIII, Issue 70, 19 September 1896, Page 2

Legislative Council's Banking Report.

(Per Press Association.) Wellington. Sept. 18. Tho Legislative Council's Banking Committee laid their report on the table this afternoon. It is a very lengthy documcufc, and acquits Mr Ward and the Government of all suggestions of corrwpt acts so far as the. Bankin? legislation is concerned, but finds that when Mr Ward returned from England in 1895 and disI covered his involved financial position he ought to havo at once acquainted his colleagues and resigned from the Ministr VThe report suggests that in view ot the increased responsibility of the State in connection with the Bank, the Directorate should be strengthened by the appointment of two additional Directors — one appointed by the House aucl the other by the Council, and also suggests that the agreement under which Mr Butt, Colonial Auditor, can return to the service of the Bank of Now Zealand in the event of losing his position as Colonial Auditor, should be immediately terminated. The report states the evidence without exception supports the purchase of the Colonial Bank as a judicious transaction, which has provtd profitable to tho Bank of New Zealand. The evidence also shows there is practically no sale in the colony at the present for larger properties in the hands of the Assets Co., and the Committee considers they should be utilised as far as possible under '.he Lands for Settlement Act. The committee, dealing with the position of the Estates Company, tho report states " that tho condition of the Bauk of New Zealaud required aid to be obtained at such ti cost that it makes it impossible to escape the conclusion that in preference to the creation of the Estates Company in the form adopted, the Bank should have been liquidated in 1890." The whole question as to position of the Bank of New Zealaud officers and provident fund requires careful investigation by the Directors and the Government. The Committee thinks it right to say that it has no doubt that the exposure of the Bank business through the medium of the Parliamentary inquiry, has done, and is doing considerable mischief, and that if the proceedings of that kind are repeated, the future profits of the Bank must be seriously endangered. The Committee see no reason to think that the information given to the Joint Banking Committee of 1895 was incomplete or inaccurate. The Committee recommends that the question of compelling r.ll Banks to give more detailed information in their balance sheet shoald be considered by the Government with a view to prescribe by law a more satisfactory reform of balance sheets for all Banks.