INSCRIPTION OF STOCK BY THE BANK OF ENGLAND.

Manawatu Times, Volume II, Issue 55, 28 April 1877, Page 3

INSCRIPTION OF STOCK BY THE BANK OF ENGLAND.

The Govern raent have received a despatch from Sir Julius Yogel, re the inscription of colonial stocks by the Bank of England. It appears that but little had been done m the matter prior to Sir Julius Vogel's return to England, as Agent-General. Up to that time the last communication being a reminder to the Colonial Ofßce that Parliament was about to meet, and a request for a copy of the Bill it was intended to introduce. Certain difficulties had, however, arisen, which, up to the end of March, threatened to upset the whole affair. On the one hand, the Bank of England absolutely refused to have anything to do with the Act if a certain clause, authorising the inspection of the register, was not omitted. On the other hand, a question had arisen as to the power of the colony to sue and be sued. Sir Julius Yogel verballj' pointed out to Parliament and the Secretary to the Treasury that the latter was a large constitutional question, affecting the rights of the Crown, and was no more incidental to the Inscription of Stock Bill than to any other ; and, with regard to inspection of register, he urged that the Bill, whilst it proposed to enable many persons and institutions to inscribe stock, it could not be used to advantage except by the Bank of England, because the Government would not be willing to give power to create certificates to bearer to any person or institution not prepared to be liable for an excessive use of that power. No Government would give such power with the knowledge of being liable to an unlimited extent if the certificates were improperly issued ; but the Bank of England asked for no responsibility except for certificates legitimately issued, for the machinery at its command for inscribing stock was so admirable that it was willing to accept the responsibility of conducting the business. He then suggested certain amendments by which the Bank of England would be exempt from the operation of the obnoxious clause. Shortly afterwards Sir Julius Yogel was informed that the Treasury, was disposed to think the Bill might be altogether dispensed with, excepting the part referring to the composition of stamp duties, and with tliat exception colonial legislation and a contract would be sufficient. When the question was first mooted, m 1875, Yogel himself was of the same opinion, but on counsel being instructed to prepare the Bill for the New Zealand Assembly, he was advised that Imperial legislation would be necessary toprotecttheßankand give the necessary facilities for issuing certificates to bearer. A Bill for the Imperial Parliament was accordingly prepared and submitted to the Colonial Office. This had reference only to the management of New Zealand stock, but application having been made to the Colonial Office by the several Colonial Governments, asking that the proposed management of New Zealand stock might be extended to slocks of other colonies, a Bill of much wider purpose was prepared, enabling not merely the Bank of England but any Bank or Colonial Office to undertake the management of colonial stocks. Finally, about the end of March last* a consultation was held, at which were present — The Agent-General of New Zealand, his Counsel and Solicitor iind the Counsel and Solicitor of the Bank ' of

England. The Bill was examined clause by clause, and counsel of both sides agreed that Imperial legislation was necessary, and their joint opinion, with suggested alterations and omissions, m a draft Bill had, at latest date, just been sent to the Colonial Office. The principal points noted by the Counsel are : — That colonial stock shall be transferred only m the register ; that the interest m stock of a slock holder on dying shall be transferable by his executors, notwithstanding any specified bequest thereof; where, slock stands m the name of an infant or an insane person, jointly with that of a person rot under legal disability, the hitter will have pOAver to give power of attorney ■for the receipt of dividends ; provision is made for the right to stock being transferable by delivery o£ stock certificate ; also for applying to coupons attached to stock certificates to bearer, the law of England relating to cheques on Bankers ; also for stamp duty on ptock certificates, for renewal of stock certificates, Avhen coupons are exhausted, for enabling bearer of stock certificate into nominal certificate ; for prohibiting to apply for a hold on stock cert)!';'; unless specially authorised to do .<•■; i>y terms of his trust ; for exciting tha' \ ■■■> notice of any trust shall be receiv •;';.! • by the Registrar. (The Counsel ; ■:>' ■- sider this of the highest importance, -i ;ji! that without it the scheme won J.i Lo unworkable, and no contract, bel'.wvn the debtor, government, the stockholder, and the registrar could avail to exclude the rights, as against the three, of bcr.eficiaties, claiming tlie aid of a Court of Equity.) The inspection of the register not being a necessary part of the scheme, and being objectionable to New Zealand and the Bank of England, is recommended to be omitted ; colonial stock is made personal estate, notwithstanding its being a perpetual annuity, and is I protected from foreign attachment. There is no chance of the Bauk of England taking the management of Ncav Zealand stocks until lmpmallegislation, as above indicated, shall have been obtained. ■■