The Banking Committee Report.

Manawatu Herald, 13 October 1896, Page 3

The Banking Committee Report.

On Friday night the Chairman of the Banking Committee brought up the report and read it, taking him an hoar to do so. In a retrospect of the banking business the report asserts that since 1888 up to date tha total ascertained and estimated losses is £4,040,799. During the period these losses were made the directors paid away in dividends 4865,688.

With regard to the banking legislation of 1894 the report says—" Mr Hanna, io bis evidenoe before thia eonuaittee, stated that he furnished • report to Mr Murray on the 9th June, 1894, giving in detail the position, pointing out that the deficiencies in the Estates .Company, including the deficiencies in the London balance-sheet (4800,000), amounted to £1,175,661, and recommending that application should be made for Government assistance. Mr Murray, however, states that he does not reoollect having received this memorandum. Beyond the Miaranee that there was ' a big hole to fill,' the Government did not obtain information as to the financial position of the Estates Company, and, seeing the important bearing it had in respect to the Bank of New Zealand, the committee are of the opinion that it was essential that information should have been inlisted on by the Government and the committee of the Legislative Gouneil, and that the withholding of this information, if intentional, was reprehensible. Had, however, fuller information been obtained at the j time, it would not have been suffi- 1 oient reason for the Government to ftfusa to assist the Bank. From detailed information now in possession of the committee, they have no doubt that the action taken in assisting the Bank of New Zealand in 1894 was prudent, and that by so doing a national disaster was averted. The committee state they have made careful inquiry into the results Of the purchase of the Colonial Bank bj the Bank of New Zealand. The evidence all goes to show that the purchase was a desirable one, and that the Bank of New Zealand made a good bargain. In the opinion of the committee it inessential for the success of the Bank of New Zealand, and to inspire tad maintain confidence in that Institution, that important alterations in the management should be made. Your committee therefore recommend that a reorganisation should take place : The office of president should be abolished ; a new general manager should be Appointed ; the directors should be increased to eight, and should consist of three representing tho shareholders, three to be appointed by the Governor-in-Council, 000 to be elected by the House of Btpreientatives, and one by the Legislative Council. The chairman to lave the power of veto, and to be selected by the Governor- in-Counoii. That, as far as practicable, the chief commercial centres of the Colony should be represented on such board of directors. They also recommend that Mr Butt's agreement be cancelled.