ORIGINAL CORRESPONDENCE.

New Zealander, Volume 7, Issue 579, 1 November 1851, Page 3

ORIGINAL CORRESPONDENCE.

To the Editor of (he TCuv Zeu andeii. Sm —ln the piesent state of commercial matters in Auckland, a few remaiks on the line of conduct pursued by tlip Union Bank of Australia during tho last month may not he unacceptable. 'I he Union Bank has now been established in Auckland about tlnce years, and its operations have been hithcu to almost uniloimly successful, and while it has ffiv( n all reasonable facilities for the extension of trade, it lias at tho same time kept a due check on speculation. The losses it has sustained (with one exception) cannot exceed £jO, and there is little doubt but that it has made a clear piofit of between £3000 and £4000 per annum. Thus f.ir all worked well; Meichants and Tiadesmen found no difficulty in discounting good bills, and wore, or appeared to be, satisfied with the somewhat Pk.horbitant chaise of 10 per cent ;— exhorbiUiit when compared with the Sydney rate ; when all of a sudden a straiigpr comes and swindles the Bank to a considerable amount, and then down comes Mr. Richardson, hke an avoiding angel, and visits onus the transgressions of Mr. Foksthh. All tins would appear exceedingly ludicrotis were it not that it may injure a few innocent people, who may have bought goods on the faith ot the Bank not suddenly curtailing its discounts ; -and who now find to thfir cost the folly of supporting Foreign Institution, and one over which they hare no control. There aie many grave considerations connected with this infliction of Mr. Riciuudson (whose visits, wo hope for the future will resemble those of angels). The principal of them is this— that no man in business is sate, when the Monetary Affaivs of the Colony are liable to be deranged at the caprice of every Inspector who may think fit to visit us. T can point to several parties 'whose liabilities do not amount to half their stock; and yet they may be forced to dishonour their names (although actually able to pay 403. in the pound), because a man just fresh fiona London has been sent here to try his "'pientice hand" on us. There is an old proverb "that a new broom sweeps clean," and certainly Mr. Richaiidson may claim the merit of having' swept fiom the Bank Table the best bills in Auckland. The very unceitainty as to the result of every Inspectors visit will cripple the operations both of the Bank and the Public, and make men ask themselves the question " why cannot we get up a Bank of our owni" I m.iy hcio add that Mr. Richardson's hneof conduct prespntsa strong contrast to that of his superior, Mr. Fn-rcnLK. During the residence of the latter gentleman in Auckland, the aitnirs of the Bank went on precispJy the s,ime as if he had »Ull been in. " Pitt-street," and I believe there were many peisons in the habit of doing business with the Bank who to this day aie ignorant that he was ever here ; not so, Mr. Riciiaudson, — boisds-rtell knowninAuoUandashishtedepartednamesake was at Bartholomew Fair. Tis true they were widely different. The Theatrical Director enticed customers to his booth, and made a fortune. The Amateur Inspector drives customers out, and, by so doing "damns the Bank." I presume that very few persons will deny that the best test of an undertaking is its success,' and such being the case, 1 am at a loss to understand why Mr. Rjchahdson should have passed a censure on Mtv Kennedy s acts, by pursuing a line of conduct so diametrically opposite. The business is not so much chnnged, nor are the people less solvent than they weie two years since; and lfsuch'astep was at all necessary, it inighthave been done with much greater propriety in the times of Califoi man speculation than now. Whether Mr. Kennedy's personal knowledge of men's circumstances or Mr. Richardson's ignoranco of thorn is more conducive to the success of the Bank, is aquestion th.it admits of but one answtv; and although Mi. Richahpson's acts may temporally embanass a "few honest haid-working men, jet bv the'great majoiity of the community they will be viewed with the contempt they di-setvc. I am, Sir, Tnc Endorser of a RnixrrD Address. Auckland, Oct. 51st, .10. H.

To tlic Editor of the Nkw-Zkatandcu. g IR> i am i/ud to observe that your attention has been v.awn to the*" present conduct of the lirauch of the Union Bnnk of Ausliaha established in this place. The present, il m lino, is a time ot unusual depression, but, may 1 f><^, has not that depiesiion been mainly caused by tJio Bank nulhonties talving, I may b.iy, ueedleaa alarm and theieupon stopping the usual accommodation aOoidcd tv the public in the shape of discounts. Auckland 11, at the pip^ent tune, undergoing one of those periodical obbs to winch the vyhole of these colonies aio liable, and which, in tins instance, may be traced to several causes; fiial, the partial leinoval of the Uoopb and lesbcning of Couimisaariat and Govcin-

input p\'|>e/j(htinp; i?nd}y, by the Sydney Gold IVlania j Jrdly. ppmous loh^°s occasional by (speculation, to California; and 4thly, a constdr-iablo outlay in Country Land.*. Now, I deny lljat m this there is tiny cause for alarm— anything to wannnt the course pursued by tho Bunk. The danger incut red by California Im passed awny, and though many of the our townsmen have been seiious losers yet without one siriyjit* instance of failure. It is not for me, Mr. Editor, to dictate to the direclois the course they ought to puisue ; but I think, pv«'iy mercantile man will beai me out that theie is a mutual obligation between tho faimer and the consumer, tho merchant and his customer, and the Bank and its suppoilers. llio met chant may by piocess of law* v rot the amount of his account fiom hu best customer in a time of commercial panic, or refuse to giro tho accustomed ci edit, but is impolicy so to doi In causing bun to sncitf cc be cupplea bis resourses, and if liatshnesH is carried to any considerable extent, Ins ti.ido ij completely paralyzed, and that ruin vendeicd nvoia imminent which every prudent man would wish to avert. And thus with a Eank. It exists by the support of the Public. In return for its accommodation it recmvp3 our deposits, our qonlidcncp, and hitherto the Bank established here has realized a very handsome return, and, I believe, with scaice a single instance of losi. I contend His especially, in tunes like tbe pre■ent, -hat Banu Director-, of tnlent can exert a' salutary lnlluence ovei the community by lending- a helping hand to sober industry and enloi prize, and instead of quailing liefoio the stonu, boldly stepping foithto stem the cuirent. Should the Union Bank still continue to lock her Gold within her coffoiti, careless, reckless, of the lequiremenrs of a strictly nifrcantile community, I would call ou the Citizens of Auckland to 'arise and maintain, th 'ir own cause. We have among us men of wealth, of character, and of enterprise. Had they bpon timorous at the shaking of a leaf th,o 'lifficulues of 1811-5 w'ouid not have passed away ab harmlessly. Auckland would now have been a doseit, or at best, an insignificant Tillage, instead of, as she is, tbe germ of a migbty city. Let such" men take the lead, and found a .joint Stock Colonial Bank,' and tbe public, I feel assured, would come forth to give it support. We have Commissariat and Mission , Bills sufficient for ova intei course with England. Our Directors would bo meu of our own, choice in whom we bad confidence, and amenable, to the public lor their conduct. The difficulties that somo might be unavoidably placed in, and which came under their review, as Directors, would he buried there, instead of, as often occurs, with an irresponsible Directory, going foith to the woild -to the serious mjuiy and annoyance of those concerned. Should the abore suggestion be thought worthy of notice and Be acted on, I shall feel happy to contribute my mite as a shareholder and depositor in any Bank fotnipd on popular principles to meet the wants of ourrismg community, fully assured, that we only want '' Fair play and no favour" to render us a sound, th living and ultimately a wealthy people. Auckland, Oct. 30th,' 1851.

To the Editor of, the New Zlalandcu. ,; Srß,—t beg to thank the ''Tyro" of to-day's "Southern Cioss" for tlio exceedingly polite aud gentlemanly manner in which he corrects the very foolish error I made id ray note to you. . ;> " A Lover of reai/ Consist ancy. October Slsr, 1851.