GENERAL LEGISLATIVE COUNCIL, [From the "Wellington Spectator."] Tuesday, July 8th, 1851. BUILDING SOCIETIES BILL.

New Zealander, Volume 7, Issue 557, 16 August 1851, Page 3

GENERAL LEGISLATIVE COUNCIL, [From the " Wellington Spectator."] Tuesday, July Bth, 1851. BUILDING SOCIETIES BILL.

Mr. Brn. said liproaenith great pleasure to move the second reading of the Building Societies Bill, which lie believed to be a movwi-e tlmt v>oi.ld confer r. very cioat benefit on a laige portion"* thecoinrnuoi'y ; mid, its v.ms umml on tbc 3 oond re?ding of I). Us, lie would shortly eiphir. the cjeacrnl objects and principles of the so< icties which it was piopo-i^u to e-stsr-'m. rjc/uie doing so he wished to remind the Council that ho wis not asking them to sanction any new idea, or to establish nny thing which had not been tried beforp. In England building socuties had been formed in many places, and with veiy large success ; end their "success was thought of co much advantage that I'aih.inwnt had Bomo yeaia a~o passed Acts for their especial piotection and encouragement, and had regulated iheir management in the most careful way. Lar^e nuirbera of the working clasps at homo had bo associated themsulvtia for tha coHimop advantage, and vpjy Jur^a biiina had been mised and invested u> property by them. In the casp of oae ?oc:Gt_v nlone, lie had been inioimed by a gentleman wl>o had bad considei able wipenencpin these Tiiatterd, no If-is a sum than £2r,000 had been so ra.sed oul of small navinga periodically laid by, and expended by the memhers ioi their own bent-lit. But if aociftire oi this land had worked successfully in England, and had contubuted to the comfortable establiahmetit of thousands there, it *\as obvious they would be infinitely more tdvimfagt'ous m a new country where wagos find pioSts snd ibe interest ot money were so much higher than, at home ; and where, consequently, it much edMer for a working: msn to l»y by some of hn earnings, and by association with such societies either to obtain real propeity, for uhich he would otherwise bars to pay high rentu, or rapidly to accumulate. Ins &a\ ings* upon fc coinparatm'ly hipli interest. Now ,-ocieties of this embraced bot'i iliow objects. In the fir^t place ihej Otl'etfd te their ii.tmb^rs the opjiotunitj of acquaint; pojciH csn <?n^y t rivH ; in tits* second \hjy ]>7«TiJci an accumulating Ami £». .«.».'...;; v.Lo. . »«■*"■»■ rr»~i tnat *ay of inve'-tiug thoir s.winirs. Without tioubln q tbd Council Hith miry det.nis »■< to fcfv «>pi*.il emplou'd by varous ivicietiea of the coit tt honu 1 , he would b.iefir f-«y tut it h»'l f>epn c.«iea!»twl (aijd from careful esaiuiuaHorj Le behoved the colculation y.h* convft) Uiftt n soviet} e<?tablHh«<l under the jHoposcd OiJinaoct 1 \/o«ld noik wel! md suce uaslull> if it sinned vith SW hlmres »t £100 each: that in point oi fact, wn l!k° propo<fls o( r •iocu>"y whuh hud been tdmuljr foimed \u Well/tigton, azid v^Licb r, ould ptoccid ttca-e to voik if the Old in» nee uere pn^tij, as UiP^ie^ler liiiiwln r of the iliaifii hi»d sctually be>'?i subscribed. It via* of courfle cm e^feuual point in theee soci* ties that theic exigence nhoitkl toranu?.te «t B fixeii period, wlun tl)« fcccumwlnted fund, or such part of it c» had nol been leut to in^rnberi, should bo divisible. The Wflhn^ton 60«iotv «-as intended to teinutiste in l«u \earu, but na 'he calculutions had all been ba*t,i on n ee.de of nitervst ami profit much b"Jow what mis current in the coSonr, bo beherwl the society would ht> able to teiminate Miocesbfuily «'nl pofitihly in kaa thnti ten yewr**, Now, as he bvl before RRid, there were two class** who were, a" mernbert, to be Keiiefilful by Bucseties of tins sort : Mid h« «o«ld p!O«e«-d toex[l..m *h»t brinufit (tay ».Oii!d i^sp«ctitt;ly get. A stock hem* formal R« before jrtatwl, o-f 3>>o >.b»yen of £100 c»l§», n oukscriplion of ten bLirhn^s par month, nino«n(ing to i.6 per nnnam, wi*3 jaysble on wch nliaie, '1 he HienilwrH were divided in tw first — those who allowed their isubiHiipiions to ntCHinulnte fcr ten yen* 1 ?, that is till the rm\ uf the «oci«t) ;«i tl *econdlv — thoie <% ho received their shares in advance, it in otl «r word'i borrowed from tlie poeiety. The fiist clnp^ pnid 10s. prr month on each Xtf'f> ahsre, find so in ten jrr.rs «oul<l hare j»«ihl onlr £.G0 j btit cfich 8«hpcfiption accu'inlnimg 1 at high »nd compound int»i<"«t would kiwe feaht-ed in ten je%rs or Je* 11 * ,CIW), or Itio full amount o«" ttie share they tutd «.< r cem\ Ihe second ch*a, on 1 2«» contrary, ccnßisted oi thazv <*Ua t aUo •lujmc; c puWriptiou «i 10?. per moutii for tb« ttn yt-ar*, "svere w-.l'mg to take co>mid( r*bly le" than £100 ibr tbV>r share ti U*ey received it at oastc The j)roce«i« ra^ simple. As feat a* gjoaey camd la, tt@ socitty wiuM Jay it <wt in paying oil the alinrc9 of wetubers who desired to ivuliao j and the calculation wfts that during the firt.t y<artbe society could give £53 for eath niiAr« so iwiliaed, »nd ot «o«r^e r higher pric« every year, no share* hev^mo i»ora valuable by rwSMon of the HubscripMoni* p.nid oil them, i fitif, us at tha end of th<» first month jCl3<) wowhl h*re beoa received in (■ub-«cri| i» >n« on 300 fchare% ti.» «ocwty would he able Jo pay o# ii«?ar L> 7 tbr<f sha!»;«. Hut as then* would of course be m<*i y Biernbers dtviroos of ?ecesr»ig their ah«rp<« hi o Ivruice, the fl)xi;i»E»w price of £5$ r-hich the oonety can gvr^ m» to *iieA t put «p for sftlo m I'mj «vn« w«y ft> <jo<i>jrM«Knt l»»n-, »re pi»t up ri Europe. Ibatw !o«(), the quf>"!Mra ik «-ke<i vrhich roi'TOb-er, »fj;f«v'tng to {'""y d»»riiip ti** Isa >t*nr«i his aiontbly suh« •loription e<i«i .n4er«««t tor tlu> fidrftac? mads lna», f.n<l s 1 )!? to giv<" tsmp}<« to tli-> rotoutjr, w»!l tftko t)M> h*<>tMimfov i^w £100 bhrnrei Novt the compeUtion among rwemivrrf will probubly ieducetheholder6 of three Nhntro 4o «cc i pt isL.^O oJt fact* Bhitre, or probably le««. At th# end r .' the first utorUb. therafore tbo Kj«i«ty will, «»'h thf eubscnpfcione, p»y off three obares, i»hi!if;«!?»pWe«urityo»m'al pioper»y from the purties to r. h<im the i icney n piitd. At the end of tb« second month ft fconld h' a anoili^r Jt. 150 of Bui>9c?iptionß, «n<i repeat t!ip p>*oee(»o. And to on every buccts^ing inoatb m (he viKie way, th<s Hu^jcnptions h'.>n% Gciaiiiutttty mctm^ed by 'he airount ot jhttjpec paid by the parties bad ifCPiffd t^ieir fvh,»r«ifl ia ad?(iricp. 'lijusatths pn<l ©f thf in at ye&r the society would Jiaru rtepived ar/d l<»nt £1,800; at the end oi tiio f tcond yfor £2000 mate or about £i 00 0: at the cud of th« thud year .€6OOO, and po on. So that hy {.mail c a ■;}&«;<» p«nodioally mide ]^r.^e rums would soon bo leiit riming and foy the benefit ot" merabeis alone. Now tbwCouncil wouldaea what sdp.<ntngt 1'!1 '! ui'ch a scheme oi'^e'l to persona of em»l^ raeai.^ but liiduaTious habits in tho acquisition of property, and in drdTriug thair at en'ion to mttsnes oi such udvantage, ho was auui sinailar mstaiuaa would nuri*'diately coma to the icccllection of any hon. ii'«mber i » \\ho had had d"ali..[,j with real property in i hi.* country. Tlieie were iiumbi i ' of persons m the occupant) '>' land on leat-" lor >riiich they weie. jiruyiiiir mi \e or lesd lent, and on which dicv mi<;lvt have eT^ndo*! \e«is <»1 labour. At V.< end of l! i-t tirn^ v, le.s l!)- 1 , IjO'l tlv money leady to bny thi> 1.111 .11 !, tliey Cittioi Kic-f .ill their lil'oui or fleio 'Liven I') f ilieup money on iuo-"!''/! c ;it an in te Obt of iicm 'i to *> p. r cent, and icjieiitly i muo. Even il \iiev h,v\ *i o .■■ o-" 1 ' 1 ), ilh y '(»>t a>l tbe fn' they hrd pud. Ile Li'bir .* tv >o i.i whuh a. u< iLill', until had hi >j ti toi jCi jin olcij'i itioa <>i .i \y<> u <>t laud, h.ui bi'u ;t; t h r it to 'n ,!i ( -I'tiN, t in, '.in, 1 ' h s iioiise, and e-)iini<ued .ilto^oll o lhe v;>!iii» oi H to hu.n iion <t ] lv, u'y tvhut iv ta'lcd a yuid >uin^ -.hiuio ju

Li? !e.j-<\ he could m\!> n tho Uiul h'.-, own for £50. If lia Miscil tli.it aiDuunt on moi^u;* h<> wjuliJ lnve to pa; an t'\.tia»-.ii;itit tut. u"-t, aud still a; some, day have to fit'd Oie pi it'cipal : but hj b-icoum, ,i menherof the «ocW\ he could ie ti.« end of the but month rtceivp iLh i »t) l)i« tt.iDit'il on t.e tuuiuiv of hii taiid, oncl all in-. lu'id.Jy wj«l(! be the p.'vrient for ten yean of a. i»u!)-ci]j»(u"i, ;;it>rli,i}H !! t 's.i by ,'»\lt U*,.a tbp mci« mter- »>-,( li.- would jn'. .\ nHirtu'.^eo. Ag-ir, let tie Council )o k at the o.H.'of a pt'r-*on coos'ac.ci')^ -i renincy novr. H»> wy.dd hive to }>** ro:.'. Kt-< -iric' rear-, ?>»} tli»a fin'l nsoiifv to b'iv the ln.nd or Jiou-c. Tiie socip;/ cabled hi'ii to buy tlifin at oi cc i'p>.i hn p-iwi^ an annual Buh'Kii|)tn'a that hi mc»t cas- 1^ vould be li'^s than the nnt alone Ik* otl'erw i>o would horp pud. When, therefore, i!h' sncipty li«d )te»n ?omt> t«no at work, -and was better unJcrafood, it \raa pichab'e the numbo/ of shareholders would hecorro Tory j,u'» lyiucreescc 1 , e*}<ecially rtman^ t!io *or^in!r ch^. lit- had notf, bethought, pxpi'iirit'd the f>';)Vcts si ml principles of thp societies which the bill was irfoiulrd )o and shewn the ni' vantage* they v t onlJ comer ; and as ha had already j tjesi'.nsed too loJig on t!i? indulgence of the Council, j he wiM'ld fnily detain them by bnefif stating thst every possible precaution »as token to prerer.t fraud or mis- ! niarHgomenr. It waa enacted that the rules of any oociety sliouid bo subject to tho absent of tho Gorern-m-iif; t'»at ail tr«6t«PB or persons "ecei^ng the socety's moiit-j should girt* secur.t>' ; that nugMtrate-i should have ts><* pos-.er of deciding summarily m cai»3 of fraud or di«pwto; that wberen^cess.i.-y n Jutlg^of th« Supreme Court should iwterltr» for the society's protection ; aacl that full Recount;! phoulJ be penorhcaUy published. WnJi such bt> helit'-v-V. the proposed societiea would *vor!c noht profitably and admit.igeouely, an.! latg'lv j<r«mo;e the proeponty ot tbc colony by the aacowrnijfiiMit of indu.'ti.> and frugality, fti.d by the fdicihl> j.ii«/'t'od (or ilk> Atqii'aiiioi) oi property. ; lh- Aiiouvrv Gt.M-HAi.of New Zlal'.^c seconded the motiosK Re J tha bill w.is a s»pcoud time. 1 he Council then vreat into Committee on tho bill. 0;i the ntle being read, it vmj^ suggested by the Attorney General oi New Zeoliud that the title '* Benefit Societies," instead of u Uuikhug Societies," would be ino?e psprP6<»iTe of the objects proposed by the bill. Cou^'dera'ion deferred. Iv the £rst clause Sir Gkoroe Gret euggested the omi-»?ion of tlw wo:ds»"of European origin," to allow the iidtsroi', if tf«y pleased, to arad themselyea of tha advatitajjea offered by these societies. Clauses 1 to 12 were coaauUred aad Cornmittea adiourned.

Wbdnesday, Jult 9ts, 1851. jjwili>lno Bocseliks btja,. On tbo motion ot Mr. Bell the Council went into Committee oil UdiKliag Societies Bill. Clauses IS to 16 agiocd to with one ov two alight nmendiuentb. U v/n3 HUgg«vttd by the Attorney General of Nett ZtALAvo ihAi the liUicr part of clause 17 should be btriu L out, as its* eft. ct v null We to bnn~ tiis Society Li»»i«» ;!.** S»jnr»*m« C'»«»« fM jorma panpsnt, which, for the cliaiaoter of such socifetios, it would be detvuble to avoid Air Bjll ezplstnsJ tba" tho intention of tlie part o( tbf claui». referred to waa only t» eaable a pf tition, winch wue niuie a matter of form and did not require much to do, to be CdiriLd before the (Jourt p without expense to the Society. After soiua iuither discussion th« latU'i" part ut tbe ckuse «aa struck out. A discussion arose on the prolixity and tautology of the daunts of t!n> bill, »utl )t was oxplaiced that ihey were for tb^ most |>a<U copitd from .cjausea iv Acts of Tiji lituoent on t!»o very subjoct, and & reluctance had btvu felt on the pirt of tb© fraraer of the b)il to tlter tbtf lnn^cagc o( them, as they referred to the appropriation of m< •«**•/ by tho w orb ug classes, fciid liad no doubt b«en carefully framed to as to meet every poesible questaun {bat lU'ght arise. The Colonial Si-cr'tart oE New Monoter complimented the Att<irn«'y Geiwral of New Zealand on tho plam and intelligible language in which lite Ordinances of New ZedUnil new drawn np, ftnd which were, m this iespect, eotuely in uccordaice witb the Iioy&l JnutrucUoiii, and regretted this bill bad not b«ea draws up liy tbe hon. ar.d leftrned member. 'lh'j AnoiHtLT G*n>eal of New Zealand Mid, since tuo hubjfct Iwd been alluded to, he might be allowed to mention t\ ciiciunatHnce tbas )ja(i occarrci in one of the first Councils m which Le bad tiis l«)iw!. o{" bitting, "a hen i~i ituK. laember inquired with reference i.j k oil! tlj.it had been introduced, ivkstiiar that w?s iv'ally the hill or &n iniiox to it. Iho Comiaittee theu nKljourntd-