New Zealand Spectator, AND COOK'S STRAIT GUARDIAN. Saturday, August 28, 1847.

New Zealand Spectator and Cook's Strait Guardian, Volume III, Issue 217, 28 August 1847, Page 2

New Zealand Spectator, AND COOK'S STRAIT GUARDIAN. Saturday, August 28, 1847.

We have lately received draft copies of the Savings Bank and Paper Currency Ordinances, which have been introduced this Session into the Legislative Council ; from their importance to the community we have reprinted the Savings Bank Ordinance, and intend publishing the Paper Currency bill in our next number, in order that the public may be able to form their opinion upon them. The present Savings Bank in Wellington, as is well known to our readers, originated at the suggestion of his Excellency Captain Grey, and was established by a public meeting, held the Bth May, 1846, at which rules were drawn up for its management until a local ordinance should be passed for that purpose. The Bank has been in. operation about fifteen months, and during this period has been found to work well ; the deposits have increased during each quarter, and the last published quarterly statement shews the amount of deposits to be £1,178. The Bank has been conducted on the principle that all sums received should be invested in Government securities only, and the deposits have hitherto been invested in Government debentures bearing 8 per cent, interest. In the proposed bill the appointment of the Trustees (one of whom is to be styled Vice-President) is vested in the Governor, who is to be President of every Savings Bank in the colony. To the Trustees is committed the appointment of the Accountant (who is to furnish proper security, and whose salary is to be fixed by the Trustees,) and the other officers necessary to conduct the business of the Bank : they may also

make rules for the management of the Bank, but these rules are not to be valid until confirmed by the Governor. The Trustees are not to be accountable for any loss which may happen in the management of the funds except through their own wilful default ; they are not allowed to deposit any money in the 'Bank or to borrow any from it under a penalty of £100. The deposits are not to exceed £200 from any single depositor ; interest is to be allowed on deposits at the rate of 5 per cent., and the surplus which may remain at the close of the year after paying all demands and the necessary expences of management is to be divided among, and placed to the credit of, the several depositors in proportion to the amount of their deposits. The Trustees are authorized to discount bills not exceeding six months date, and to effect mortgages on landed security to the extent of one-third the amount of deposits, as well as to invest deposits in Government securities. This permission to discount bills and to advance money on mortgages will probably be considered the most objectionable part of the Ordinance, and is contrary to the principle on which these institutions are regulated in the Mother Country. The chief object of Savings Banks is to encourage habits of industry and providence among the working classes, for whose use they are especially designed, by enabling them to deposit the smallest sums and by offering them the most perfect security for their money. In England the deposits are usually invested in Government securities, and there appears no reason why this practice should be departed from in this colony. The discounting of bills, and lending money on security, does not appear to fall within the province of the institution, but rather to belong to those who trade in money. In discounting bills debts may be incurred, in mortgages the value of the securities may fail or be depreciated, and loss may be entailed on the institution from various contingencies, notwithstanding the utmost prudence on the part of the Trustees. In such a case the loss must fall on the depositors, and the institution would fail in the chief object for which it was designed. It must also be remembered that these banks are established for the benefit of the natives as well as the settlers ; the former have already become depositors, and their deposits, as the nature and objects of the institution become familiar to them, are likely to be considerably increased : the amount of their de- \ posits will become an evidence of their advancement in civilization, and a security on their part for the tranquillity of the country. Now the natives place their money in the Bank in the full confidence that it will be perfectly safe, and that the conditions held out to them will be faithfully performed, and if from any unforeseen contingency a considerable loss were to befall the Savings Bank, it might cause the native population to withdraw their confidence, not only from these Institutions, but from the Government that established them, and confidence once lost with a race so cautious and suspicious would not easily be regained. According to the present bill the local Government while it attempts to regulate the Savings' Bank does not incur any responsibility. It guarantees, it is true, the repayment of any loan required to meet a sudden run on the Bank but it does not offer to advance the money. Now if a ! guarantee were given on the part of the local Government to advance to the Banks in the event of any sudden demand upon them a loan on the deposit of Govern- ; ment securities, it would not only enable the Banks to invest deposits to a greater amount, but also by the guarantee thus given would establish such a degree of confidence in > the public mind as to avert the contingency against which it was intended to provide. In this way the Savings Banks might gradually invest their deposits in debentures until they became the principal holders of them. In the Ordinance provision is made only for the publication of a yearly balance sheet, while under the present management a quar- ,

terly statement of accounts is published." The latter is by far the best system, as the frequent publication of accounts is a guarantee to the public and inspires greater confidence in the institution. In the above remarks we have endeavoured to point out what appears objectionable in the proposed Ordinance, because we conceive that whatever tends to weaken the confidence of the public in these institutions must impair their usefulness, which we should exceedingly regret as they are calculated to effect much good, particularly to the native race. It is possible ttat in the Council these objections may be removed, a prudent management may also refuse to ] avail themselves of the powers to which we have adverted. But it will be much better if the power is not granted, as it will re- i move any ground for distrust, which on every account should be avoided. By the ordinance it is also proposed to appoint district Trustees for the purpose of extending the benefits of Saving Banks to the country districts ; this we conceive will be a great advantage particularly to the natives residing at a distance from the settlements.

Thursday being the anniversary of Prince Albert's birthday a royal salute was fired by H. M. S. Calliope.

The Bee was to sail from Sydney for this Port about a fortnight after the London and may therefore be daily expected. The Frolic may also be expected in a fortnight on her return from Sydney.

The schooner Mary Ann which went ashore about three or four months since at Tologa Bay, has been got off, taken to Auckland and repaired, and may therefore be shortly expected on her return to this Port.

The following are the latest accounts received from the different whaling stations to the Southward : — At Ames' station 41 tun* of oil had been taken, at Fitzherbert's 18 tuns, at Fyfes 35 tuns of black oil aud 7\ tuns of sperm. At Price's 46 tuns of black oil, Wood's 46 tuns, and Rhodes' station 30 tuns of black oil. On the 11 th inst. one of Mr. Fyfes boats was suddenly capsized and stove by a wbale they were in pursuit of, which made a sudden rush at the boat : by this accident one man (a native) was drowned, and Mr. Fyfe himself narrowly escaped meeting the same fate.

Wellington Savings Bank. — Dr. Dorset, Mr. It. Davis, Dr. Fitzgerald, and Mr. G. Moore, the Managers in rotation, will attend to receive deposits at Messrs. Johnson & Moore's store, from seven to eight o'clock on Saturday evening, the 28th August 1847 ; and at the Union Bank of Australia, from twelve to one o'clock, on Monday forenoon, the 30th August.

The Governor General of Australasia. — The following is extracted from a late Hobart Town paper : — " Private letters have been received by the English Overland Mail from Sir George Arthur. They contain the important intelligence that that eminent personage having been unable to accept the high office of GovernorGeneral of India, is pressed to accept the office of Governor-General of Australasia — the head-quarters being fixed, owing to the salubrity of the climate, at Hobart Town.