BANKING JOURNALISM.

Globe, Volume XXII, Issue 2079, 22 October 1880, Page 3

BANKING JOURNALISM.

Under the heading of “ The Bank of New Zealand and its newspaper advances,” a “ Bank Shareholder ” thus writes to an Auckland paper : —“ When banking establishments go outside their legitimate business, it is only reasonable and proper that some public attention should be directed against the system which permits bank overdrafts to newspapers through its responsible servants. I am led to these remarks from the fact that, some time ago the late proprietors of the Christchurch “ Sun ” assigned the whole of their debts to the Bank of New Zealand, a fact which was made known at the time through the polite circulars of the Bank’s solicitors. A farther inquiry revealed the fact that the proprietors of the newspaper alluded to had got good advances from the institution, hence the amount of the overdraft. Ido not, of course, know, but it was hinted that it exceeded some thousands of pounds and was common rumour. Now, I hear of a similar concession being granted to one of the Wellington newspapers, and it strikes me that the thing is getting an almost universal application. The approaching half-yearly meeting of the bank in question seems a fitting opportunity for ventilating the subject, and should it be found that these accommodations are permitted I feel certain that the scrip holders will at once set their faces against such speculative profits, and compel the management to adhere to the deed of association. There is ample available means where newspaper proprietor elite other ordinary mortals, can raise the wind in case of need and if timely warning should be the means of mating the directors discontinue what I cannot help calling an objectionable method of doing business, I shall not have written in vain. It is out of all reason to suppose that the hundreds of holders of Bank shares who are resident outside the colony would for a moment sanction the using of the funds in the direction indicated. The matter I look upon as of great importance, and I shall therefore be much pleased by your publishing this letter.”