THE KAIKOURA STAR. KAIKOURA, JULY 20, 1894. Banking Legislation.
Tuesday evening again brought the Bank of New Zealand’s affairs prominently before tbe world. The Colonial Treasurer made another very able speech (the text of which has been kindly supplied us by the Secretary of the Telegraph Dept.) in moving tbe second reading of ‘ The Bank of New Zealand Share Guarantee Act, 1894, Amendment Bill.’ Tbe Hon. Mr Ward informed tbe House that various communications had passed, by cable, between the Govt and the AgentGeneral regarding recent legislation, respecting which a difficulty had arisen. The Colonial Treasurer pointed out that ' It bad been found that under the deed of settlement of the Bank no shareholder could hold more than 3000 shares. It was pointed out that in consequence of this the capital which it was proposed to obtain could not be got advantageously. The reply that was at once sent by the Govt stated that under no circumstances would tbe Govt agree to tbe floatation of the capital unless the Bank received par, or not less than par. Government said that the Colonies credit was anchored to this transaction, that the Colony had given a guarantee, and that therefore they would not permit this capital to be obtained at less than par. Government thus put the Agent-General in the position of advising the Bank authorities in England and of enquiring whether they were prepared to rake the responsibility of getting the capital under the share system at par or above par. The Agent General advised that it. would be expedient, and (said Mr Ward) I also say the financial advisers who represent the Bank in this Colony concurred, to substitute stock for shares, and that if* this were done the capital would be got at not below par.’ The Treasurer proceeded to show that the Bill brought in had for its object provision for substituting stock for shares. The matter was one of urgency, owing to the approach of the Autumn holidays, before the commencement of which it was necessary the sanction of Parliament should be obtained. Hence recent cable messages about the underwriting of capital, etc. The Hon. Mr Ward pointed out that holders of stock could not vote as ordinary shareholders. He, further directed attention to tbe mechanism of
recent and amending legislation. He said, also, that the Government fully recognised the desirability of having the Assets Company’s affairs disassociated from tbe Bank, but this cannot be done hastily. He added :
‘ We are determined to maintain a careful watch over the Bank to see that it is brought back to that position which unfortunately for tbe Colony it departed from years ago ; that it is brought back to do legitimate banki.ng only. It is probable that some further information on this subject will be placed before tbe House at a later date. Finally, I need hardly point out to Hon Members bow important it is that tbe institution in question should have at its command the extra million which the proposals already consented to by this House will give it. I need not tell Hon. Gentlemen what an appreciable and improving effect this will have upon the trade and industries of tbe Colony because until that money comes here you may, and I say deliberately, expect to see a continuance of tbe tightness of money and the want of proper employment in many places, and to a certain extent continuation of the uneasiness prevailing so long.’ The Treasurer pointed out bow the action of the Government had been applauded by all shades of opinion in New Zealand. In answer to interjections by the Hon. Capt Russell and Mr Crowther, the Hon. Mr Ward said that the second million, about which there appeared to be some coacern, need not occasion any anxiety or misapprehension in the minds of Members. It was being raised, not for the purpose of carrying on the Government of the Colony, not for the purpose of doing that which some Members feared, but for the express purpose of strengthening the Bank’s position. One million is for enabling the Bank to meet iis legitimate trade requirements, the second one for strengthening its reserve. The second million is to be kept ‘ liquid,’ and is to be invested in securities of an approved order. Subsequently the Hon. the Treasurer showed that the sole desire of the Government was to ensure the financial stability of tbe Bank, so that that institution would be trusted both outside and inside the Colony. Throughout his speech the Hon. Mr Ward showed a masterly grip of the whole matter, and exhibited further evidence of the possession of financial acumen. All through this intricate and delicate operation he has displayed marked ability.
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Kaikoura Star, Volume XIV, Issue 757, 20 July 1894, Page 4
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787THE KAIKOURA STAR. KAIKOURA, JULY 20, 1894. Banking Legislation. Kaikoura Star, Volume XIV, Issue 757, 20 July 1894, Page 4
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