NEW BANK TO BE FORMED.

Manawatu Herald, Volume XLIX, Issue 3814, 5 July 1928, Page 2

NEW BANK TO BE FORMED.

CAPITAL OF TWO MILLIONS

Wellington, July 3

A proposal to establish a new bank, with a capital of £2,000,000, has been taking shape here lately, and a bill with this object in view has been drafted and put in the hands of Mr. Eliott, the member for Oroua,. for introduction in the House of Representatives. The new institution is' to be known as the London and New Zealand Bank, and in its operations it will have a leaning to providing finance for those engaged in the primary industries of the country.

. Tlfe capital of the new bank is to be £2,000,000, and it is stated that the underwriting of £1,000,000 has already been arranged in London..

One condition of the articles of association is that the new bank will not become a member of the associated banking group at present operating in New, Zealand. The capital of the bank is to be in £1 shares and the qualifications for a directorship will be 1000 shares. The bank is to carry on ordinary banking business, and the bill provides for the right of issuing notes. V

As the present session in a short one on the eve of a general election, and as the subject will open up a flood of talk, involving the establishment of a State Bank as proposed by the Labour Party, the chances of the passing of the bill by the present Parliament may not be assured. The introduction of such a measure, however, will probably lead to an interesting discussion on the general questions of banking in New Zealand.