MAORI “WIZARDS”

Gisborne Times, Volume LXI, Issue 9855, 7 November 1924, Page 6

MAORI “WIZARDS”

KATANA SETTLEMENT BANK

BIG RETURNS FOB- SMALT/ .DEPOSITS.

WELLINGTON, Nov. 5.. Spurred on no doubt hy the discussion in press and .Parliament on Stale hanking and agricultural hanks, a hitherto undiscovered financial genius has evolved a. new bunking scheme for the Katana .settlement, near Wanganui. Tlio matter was brought to light hy a (pieslioifpiit in the House to-day by a .Labor memher (Mr P. Eraser) who asked tlio Minister of Justice W, bother it was a fact that the .Katana settlement was recently visited I>v the police and,- if so. whether there was any reason or .justification for that action. The Minister of .CikUco (the Hon. 0, J. Parr) replied that tile file regarding the matter had only readied him in the last two or three minutes and lie had not had an opportunity of going through it. Ho gathered that, at tlio request of the Minister of Native Affairs, a constable visited the settlement some little time ago to inquire into a Maori Federation receiving money on deposit from Natives. Complaints had heen made that seme form of hanking business ivns being carried on and that, the natives were being invited to invest their money at a high rate of interest. The Minister of .Health (Sir Maui Poiuurc) said that extraordinary claims were being made hy the hank. For instance an extract from a circular was as follows: "When you borrow money from the hank coupons to ! In' value of the amount lion-owed by you will he issued.” Some of the members of Hie Katana Settlement had asked the question: "What were the coupons for?” This was the reply: "The coupons are used in repayment of the amount borrowed by ,\eu. Cel us say you borrowed .15.1.00. /V coupon ter (bat value will be issued to you; the interest payable by you is .012. That is to say, inlerest for the ,01(10 in coupons and the 0100 borrowed by you. The I’niou will pay you .00 per annum for the value of .01.00 in coupons issued to you. The total amount to be sot aside by you therefore -is .01. R. In this way it will not lake long to have the moil gage repaid. The Prime Minister: AVauganui finance. (Laughter). Sir Miutii: Yes; this comes from Wanganui.’’ II was necessary, in tlie interests of Ibe Natives, continued I In' Minister, In have some investigation carried out. The principal man concerned w.as a man who wanted a license as an interpreter, but, because of some shady dealings, the license way (-aneelb'd. II was deemed expedient llial there should lie some invest igatieu into such a wonderful banking system. iMr 11. Poland ((Miineinuri) : ( an wo take shares in il.'r’

Sir Maui: I advise you to put all xour money into it : you will get holier dividends (ban you gel from the races. (Laughter). The .Minister of Justice added that be saw from the tile (bat a legal opinion bad been given to the olli'cl llial there could be no prosecution unless it could be proved that money had been received by false pretences Special. i.rr* :r-— —rr— —rrrrrrrrv j