The Bank of New Zealand Call.

Manawatu Herald, 29 January 1895, Page 3

The Bank of New Zealand Call.

The Auckland Herald's London correspondent says the unwelcome call of £8 6s 8d on the part of the Bank of New Zealand is still a prominent topic of conversation in ! city circles, A very fair and clear statement of the case— so at least it appears to me — is given by the Financial News, which after a careful analysis of the case on both sides, ends by a complete endorsement of the action taken. London has obtained an opinion of counsel that the call is illegal and cannot be enforced. But the Financial flews points out that this amendment of the deed of settlement was one condition on which the Government came to the rescue of the Bank, and so averted a call of not £3 6s 8d but £10, which would have been due without any possibility of question. In the opinion of the Financial Nhvs, no such limitation of calling power as existed in the settlement deed was transferred to the Act of 1894, which " says plainly that of the £10 reserve liability due in certain emergency one third shall be available without that emergency occurring " To resist a call, which is one of the conditions on which they have avoided a call three-fold larger and a heavy loss, is in the opinion of the same financial organ " like the case of a man who has been saved from drowning begrudging a suitable re ward to the person who came to his rescue." So though the shareholders are tendered the heartiest sympathy in the unexpected demand which has been made upon them, they are advised to be thankful matters are no worse. The Scotchman commenting on Bank of New Zealand call, says it is natural the shareholders of the Bank of New Zealand should protest against being used for the purpose of making secret loans to the Government of New Zealand.