THE BANK OF NEW ZEALAND.

Hawke's Bay Times, Volume I, Issue 2, 11 July 1861, Page 4

THE BANK OF NEW ZEALAND.

(From the New Zealander, June 2(1.) Twenty years since, in the little settlement of Kororareka, at Ihe L'ay of Islands, there was established the Sow Zealand Banicing Company. Us actual capital was small —about £7,000- —its proprietary not numerous ; one- half of its sha res was held in Rvdnev. the other by residents in the Bay of Islands, the first, and at that time, with the exception of Port Nicholson, the only place where Europeans were located m these Islands. Without much pretension, the usefulness of the little bank was felt and admitted to bo groat. For several years it transacted the exchanges, received the deposits, and discounted the “paper” of the young community. Wien the head-quarters of the G-overnnient were removed to Waitemata, — and all idea of making Bussell the capital of these Islands was abandoned, a branch of the bank was opened at Auckland, and an attempt, unhappily ineffectual, was made to transfer the principal cilice from Kororareka to this place. The failure of this attempt decided the fate of the enterprise. Directors at the Bay of Islands mismanaged its affairs, and, after a vain effort to right itself and to carry on, the liabilities of the hank to the public were scrupulously discharged, and its allairs wound up. The shareholders were the only losers. The effort firmly to establish a local bank was premature. The populat ion was small, fluctuating and non-producing. Their capital was small also, and a higher interest or a greater profit was obtainable from its employment otherwise than in the purchase of bank shares. For three years or more, Auckland was without any banking establisluncnt, —the business of discount and exchange being conducted by individuals who managed it with considerable profit to themselves, and also with convenience to the public. It was the interest of those persons, of course, to retain their hold of this business ; and some time, therefore, elapsed before the Union Bank of Australia was induced to occupy the field from which they have since reaped so much pi-ofit, and in which, it must also be admitted, they have rendered valuable aid in developing the resources of this Province, and of the colony. The idea, however, of a local bank has never been wholly abandoned ; and from time to time since, projects of that kind have been discussed, — but none of them have had strength enough to rise into the region of facts. The recent unexpected withdrawal of the branches of the Oriental Bank, the inconvenience to which that peremptory and unexampled proceeding has subjected the community, and the possible damage which the public credit of the Colony abroad may suffer therefrom, seem to have alarmed the colonists into t aking measures of self-defence ; and, accordingly, the Bank of New Zealand, the prospectus of which is now before ns, has been fairly launched, with, as it appears, a reasonable prospect of success and usefulness.

The capital, wo learn from the prospectus, is fixed at £500,000 in 50,000 shares of ten pounds each, one-half of which it is proposed to call up, in the first instance, by payments at fixed and convenient intervals. It is also proposed to make it, in the widest sense, a Bank of Now Zealand, and to oiler to (ho people of all the Provinces (lie opportunity of helping to build up a colonial institution. The presence in Auckland of the representatives from the several districts, in attendance upon their duties in the General Assembly, has favoured this plan; and we observe in Hie list of the Provisional Trustees, the names of men who are themselves the representatives of the successful enterprise and of the wealth of their respective Provinces. “A reference to the hank returns,” says the prospectus, “ published periodically in the Government Gazettes of the Colony, will show the very large profits made from the deposits of the colonists. What foreign banks have for many years done for us with our own funds, we now propose to do for ourselves by local effort and management.” From the statement of the average liabilities and assets in New Zealand of the Union and Oriental Banks, we find that, in the quarter ending March 31st \ilt., there were of notes in circulation £133,8(17 ; that the “ deposits,” more than half of which bear interest, amounted to £717,313 12s. Id., and that the coin held by the banks amounted to £221,211) 9s. 9d. Tin’s latter sum may be taken to represent the amount of the capital employed. The money of the colonists, lent to these establishments in tile shape of deposits, forms the bulk of the capital with which their business is carried on. There seems, then, no reason to doubt that the now bank, if once fairly established, will secure at least its share of benefits, and that a portion of the profits which have heretofore been sent away, may bo retained and added to tiic capital of the Colony. Up to this time the progress of the new scheme lias been satisfactory ; wo arc informed that in Auckland alone, within a few days, 10,000 shares, representing £IOO,OOO, have been taken up —and that many more will bo disposed of. For this result we were not prepared, seeing the difficulties which have attended attempts made to form local companies for other purposes of apparent utility and promise ; but the fact proves the general favor with which the Bank of New Zealand is regarded, and that the necessity for the existence of some such institution is felt by the people. There seems to bo a tolerable certainty that in the other Provinces the shares will bo speedily subscribed, and then, the Act of Incorporation which is now before the General Assembly having boon passed, the Bank of New Zealand will have become a fact.