Manawatu Herald. TUESDAY, DEC. 11, 1894. The Outlook.

Manawatu Herald, 11 December 1894, Page 2

Manawatu Herald. TUESDAY, DEC. 11, 1894. The Outlook.

Certain papers are praising the action of the directors of the Bank of New Zealand in calling up one-third of the reserve liability on the Bhare capital. It may be necessary, but it has come, undoubtedly, as a serious shock to many holders, and besidei being almost ruinous to

some, will create a most unpleasant feeling of insecurity throughout the colony. It is only two or three months ago when the colony as a whole guaranteed to this distressful institution two millions, on the assumption that this would tide thorn over their difficulties. It is not re-assuring to find that almost as soon as the new board of directors meet it is found that another halfmillion is wanted within nine months. This may be all that will be required, but, will anybody believe that this is so after the continual demands already made ? Possibly it will be argued that it must be so> but then We have been told that at so many different times, beginning when the reserve was written off, when the shares were written down, when the Government gave their guarantee. Will anybody really be told what position the bank is really in ? Shares have been practically unsaleable, and have produced no interest to the holders, and now they have actually to buy them over again. It is the shareholders' misfortune, but whose in the fault? It would eeetti it Would have been better if the institution had openly confessed its position long before now, than to first entangle the colonists and then pull again upon their shareholders. The history of the past makes a painful record for colonists, and nothing can be said too harsh about those answerable for its conduct. Are these men, who have brought ruin to many a household, to many hapless Women and aged men, to go unpunished ? The Government having accepted a certain responsibility ought in common fairness to attempt to punish those who are guilty. It is said, how true we cannot say, that some men who have held positions of power on the direction of this ban I*,1 *, are in enjoyment of money obtained from this institution, but secured from its grasp. If so, seeing the trouble it is necessary to deal out to the unsuspecting and honest share holders, some effort should be made to make these persons disgorge. There appears to be a. haste in making this call which is very disquieting. There could not be a worse time in which to make such a demand. The colony is in a most unsatisfactory financial state, labour is at a discount, our chief articles of export are lower than they have been for years, and still, in the face of all these difficulties shareholders in the Bank of New Zealand are called upon to make further investments, against their will, in an institution which holds out little hope of even returning them a small interest for some time, at a time when money for most necessary purposes is hard to gain. Under these circumstances it would have been more generous to have waited awhile before making a call, and the only excuse for doing so, at this time, must be the urgent necessity for such a course, which is not re-assuring.