Hawke's Bay Times. NAPIER, FRIDAY, SEPTEMBER 11, 1863.

Hawke's Bay Times, Volume III, Issue 140, 18 September 1863, Page 2

Hawke's Bay Times. NAPIER, FRIDAY, SEPTEMBER 11, 1863.

When a number of enterprising and farsighted men embarked their capital in an tindertaking, one of the intentions of which, amongst others, is to afford facilities in monetary matters upon fair and easy terms to the settlers, merchants, and tradesmen of New Zealand, they did so no doubt anticipating that those advantageous pecuniary arrangements offered by their corporation, and so eagerly accepted and taken up by private individuals, would be as keenly ap-

predated and made use of by the numerous governments of one sort or another which find a subsistence in these islands. And it was no doubt also naturally enough expected that those Governments would do so no, alone from a laudable desire to get the mouev business of the public done cheaply and with security, but with a view also to promote and support that institution, the operations of which tend so materially to infuse life energy, and a healthy action into the commercial transactions of that young but rapidly expanding community amongst whom its lot is cast. The New Zealand Banking Company having thus at the very outset of its career received ready support from all classes interested in the welfare of the colony generally, in the development of her resources, and in the encouragement of every branch of industry which has taken a stand upon her shores, Js, as a matter of course, and as a very natural corollary, in very active and satisfactory operation in every town and settlement of sufficient size to warrant the establishment of an office. It would seem therefore, very prudent under these circumstances that the Provincial Government of

Hawke’s Bay would now, as formerly under the Suporintendency of Captain Carter, take advantage of the stability, respectability, and liberal terms of tire Bank in question, and at once and without further discussion of the matter give to that Bank all or at all events a very large share of the public money business.

But it is very evident by the advertisement or notification which appeared in the Gazette of the 18th ultimo, inviting the Banks in operation in this Province to send in tenders for the keeping of the Provincial Government account that that Government is by no means so anxious to profit by past experience, and to recognise the services rendered to the Province by the Hew Zealand Bank, as we have every right and every reason to expect that it should.

We are not now about to draw striking and lengthy comparisons between the different Banking establishments here, but we nevertheless cannot omit observing in this place that there is a vast difference between the interest which the Union Bank has in colonial affairs and the interest which its younger and purely colonial brothers have in the matter. And the difference lies in the fact of its being the object of the firstmentioned corporation to get as much profit out of ns as they can, and invest as little capital with us as they can. Whereas, the New Zealand Bank, for instance, has a direct interest and a large stake in the progress and prosperity of these islands. Almost all the capital upon which that Bank trades has been subscribed by gentlemen living in one or other of these islands, and therefore, as the Bank flourishes so will the colony, and, on the other hand, so long as the colony progresses and expands, so long Iso will its own particular and native-born Bank progress and expand. If things looked doubtful in New Zealand, the Union Bank the New Zealand Bank. That corporation must sink or swim with us, and therefore it is especially entitled to our most earnest support, being, as it also is, of vital importance in a pecuniary sense to many hundreds of our fellow colonists.

We recollect, very well that in the days hen tue wnion Bank held uncontrolled sway over men’s pockets the Provincial Government, like the rest of the possessors of cash, (for in those balmy times money was plentiful in the public coffers; but, alas ! not so now,) kept the public money account at that Bank, and sometimes enjoyed the superlative satisfaction of knowing that therein was to be found a very considerable balance

of cash in its favor, with which capital the Bank of course carried on a very profitable trade. But somehow or other, regardless of this important fact, and forgetting that it did not allow the Provincial Government any interest whatever upon cash balances, that Bank would hardly deign to recognise the existence of the youthful Government when by a downward turn in the wheel of fortune it was reduced to the necessity of requiring a temporary loan. Having at last ungraciously enough granted a trifling advance, upon the most unquestionable personal and other security, the Bank did not lose sight of the opport unity thus afforded of getting tea per cent, on the loan, and they got

it accordingly. It would seem that the Colonial Bank being aware of these circumstances, most liberally came forward and offered Captain Carter to take charge of the Government account, and to allow interest at the rate of four per cent, per annum on all cash balances, permitting the account to be overdrawn at the moderate rate of eight per cent. This transaction no doubt an-, swered the purposes of the Bank very well, while it most undoubtedly answered the purpose of the Provincial Government, as by it that Government reaped advantages which were denied to it by the Union Bank, notwithstanding the prodigious profits which

that Bank must have made outits transactions with the Provincial cash.

Taking into consideration, therefore, these important facts, and remembering that under the cautious and safe managemejit of the late Superintendent the Provincial Government and the New Zealand Bank worked well together, we must say that we see no reason why that Bank and this Province should not continue to enjoy those advantages which accrued from their former transactions, and we protest, in the interest of the Province, and in the interest of those of our fellow colonists who have with so much enterprise embarked large sums of capital in the Bank to which we allude, against the withdrawal of the Provincial business from that Bank.