New Zealand Spectator, AND COOK’S STRAIT GUARDIAN. Saturday, March 29, 1851.

New Zealand Spectator and Cook's Strait Guardian, Volume VII, Issue 590, 29 March 1851, Page 2

New Zealand Spectator, AND COOK’S STRAIT GUARDIAN. Saturday, March 29, 1851.

We understand it is in contemplation to establish a Local Bank in Wellington, and the preliminary steps which have been taken have met with such encouragement as to leave no doubt or question of success. From the enquiries we have made we believe the following may be received as a tolerably correct outline of the views of the projectors of this Institution. It proposed to establish in Wellington a Local Bank of deposit, discount, and exchange, issuing the notes of the Government Bank of Issue. The capital of the Bank is to consist of £50,000 in 2000 shares of £25 each, of which 20’ per cent., or one-fifth, is to be paid up, forming at the commencement of its operations a working capital of £lO,OOO. The rate of discount on bills of less than one hundred days will be 8 per cent., and 2 per cent, will be allowed on all .deposits above £lOO remaining in the Bank for any period exceeding six months.- ;Two-thirds of the profits of the. Institution are to be annually divided among, the proprietors, and the re-j-hird Is to be reserved as a rest or

surplus fund. The accounts of the Bonk will be published quarterly in the Government Gazette, so that due publicity will be given to its proceedings and the Government and the community informed of the state of its affairs. Application will be made to the Government for an Act of Incorporation, which there can be little doubt will be readily granted; .and as soon' as the required amount is subscribed a meeting of the Proprietors will be held to elect Diiectors and other officers of the Institution, and.to frame regulations for its management We may add that within a few hours after the project was made known nearly one-fourth of the required capital was subscribed.

The desire to establish a Local Bank has been entertained from the first formation of the settlement. Before the town lands were selected, before the survey of the town was completed, within four months after the first immigrants were landed, a Prospectus was issued for the formation of a Local Bank at Port Nicholson. The project however was not successfully carried out, and has remained in abeyance until the present time, when it has been revived with every promise of success. The immediate advantages likely to result to the community from the establishment of the proposed Bank are, a reduction of the rate of discount, so as in this respect to place Wellington more nearly on a par with the neighbouriug colonies; an allowance of interest on deposits which, though low, would still be a great advantage to the newly arrived immigrant; and those increased facilities resulting from the beneficial effects of competition. Hitherto the Union Bank of Australia has had a complete monopoly of New Zealand, and like all monopolies it has taken a narrow and contracted view of its position in exclusively consulting its own interests, instead of adopting that more enlarged and liberal principle which, in studying the interest and convenience of its customers, regards them to a certain extent as identical with its own. The most notable instance of this conduct was the withdrawal of its branch from Nelson on the plea that it did not pay, although from its first establishment the Bank has derived a handsome profit from the colony, while for the last eight years it has been the boast of its Managers that it has not made a single bad debt. We must, however, reserve the discussion of this question to another opportunity, our present object being merely to give our readers an outline of the proposed scheme, and to indicate some or tne advantages which it holds out. We may in conclusion add that it has originated with, and is mainly supported by, the mercantile portion of the community; and that it is in no way connected with any political party, men of opposite political opinions having united in the attempt to establish this Bank in the belief that they were supplying one of the wants of the settlement.