BANK OF NEW ZEALAND.

Kaikoura Star, Volume XIV, Issue 752, 3 July 1894, Page 4

BANK OF NEW ZEALAND.

WELLINGTON, June 30

There was great excitement in the Lobbies yesterday afternoon. The Legislative Council adjourned till 8 p.m. when it was convened for purpose of considering matter of great urgency and importance.

The whips warned the members of the House of Representatives to be in their places at 7 30 p.m., it being stated a matter of urgent financial character was to be considered. Later:

The important business in the House on Friday consisted in a Bill, introduced and passed through all its stages in both Chambers, to guarantee, out of the consolidated fund, a special issue of Bank of N. Z. shares, valued at £lO each, repayable in 10 years, with interest at 4 per cent, to extent of two millions sterling. The Hon. Ward, in introducing measure, explained that Govt were forced to take this action. There was very little opposition. The matter has caused a great sensation. SYDNEY, June 30

Announcement of passage of Bank of New Zealand Share Guarantee Bill created very little stir this morning. Business of local branch was even less lively than usual on Saturday. WELLINGTON, Today Sydney Press congratulates N. Z. Govt on action taken re Bank N. Z., but thinks a State Bank inadvisable.

Patterson, of Victoria, considers the action statesmanlike.

Telegrams sent from head office to branches throughout the Colony have produced replies that the Act has been received with satisfaction, and that there is no disposition to withdraw deposits. (to the edttob) Sir, —In reference to your telegrams re the Bank of New Zealand, until the papers are to band one cannot tell what is the exact bearing of the affair. But it seems to me to be of this nature : It is wellknown that the Bank has not had for some time past sufficient capital to undertake all the business that it might do, and if I mistake not a remark to that effect was made some time ago by the Chairman of Directors at one of the meetings of shareholders in London; and if I remember rightly a rumour was current but tolerably recently that the capital was to be increased. No doubt the Directors in London have found that capital would not be forthcoming in an ordinary way, owing to the experience capitalists and smaller owners of money have bad in the affairs of the Australian Banks. Hence the operation. Get the New Zealand Government guarantee and money will flow into you. The Government now guarantees these £lO debentures (not shares I think you will find), they will have a currency of 10 years, at 4 per cent. They will be transferable : and a person, having say £5OO, if he does not choose to put it at Fixed Deposit, can buy bis fifty debentures, with a certainty of 4 per cent int. guaranteed. What will be the effect ? The Bank’s position, good enough before, is now vastly strengthened and undoubted. Money will come into it both from Home and Colonial monied men, and as the Bank will begetting money cheaper than heretofore we shall probably find money cheaper for the legitimate use of those who require it. Another thing—query—will not the Govt be also undoubtedly benefited by the arrangement ? No doubt the astute Ministers —running our small barque of State — will have a quid pro quo, and everybody in the Colony will benefit. Moreover, what better time could have been selected for the operation, when N. Z. Govt securities are at the highest ever reached! lam &c. Bona Temfora.