LEGISLATIVE COUNCIL.

New Zealand Spectator and Cook's Strait Guardian, Volume VII, Issue 620, 12 July 1851, Page 2

LEGISLATIVE COUNCIL.

Tuesday, July 8, 1851. The Council met at the usual hour. The Colonial Chaplain read prayers. building societies bill. Mr. Bell said he rose with great pleasure to move the second reading of the Building Societies Bill, which he believed to be a measure that would confer very great benefit on a large portion of the community; and, as was usuals second reading of bills, he would shortly explain the general objects andprinci-. pies of the societies which it was nroposed to establish. Before doing so he wished to remind the Council that he was not asking them to sanction any new idea, or to establish anything which had not been tried before. In England building societies had been formed in man y places, and with very large success; and their success was thought of so ranch advaniage tnat Parliament had some years a<m passed Acts for their especial protection and encouragement, and had regulated their management in the most careful way. Larue numbers of the working classes at home had so associated themselves for the common advantage, and very large sums had been reised and invested in property by them. In the case of one society alone, he had been informed by a gentleman who had had considerable experience in these matters, no less a had been so raised out of

small savings periodically hij b pended by the members for their ex> But if societies of this kind had work i 11 cessfully in England, and had comfortable establishment of thousand k ' 6 - it was obvious they would be advantageous in a new country where* - and profits and the interest of money w 1 much higher than at home; and where*' 680 sequent'y, it was much easier for a wor?"’ T to lay by some of his earning,, anJ sociation with such societies either to h • real property, for which he would other*’’ 11 have to pay high rents, or rapidly to accJ, 6 late his savings upon a comparatively high terest. Now societies of this sort both those objects. In the first place they? fered to their members the opportunity of quiring property on easy terms; in the second they provided an accumulating fund for 5 bers who preferred that way of investing £j’ savings. Without troubling »h<> .! many details as to the capital employed by y rious societies of the sort at home, he briefly say that it had been calculated ( a u from careful examination he believed the cal culation was correct) that a society established under the proposed Ordinance would work well and successfully if it started with 300 shares at £lOO each : that, in point of f act was the proposal of a society which had been already formed in Wellington, and which would proceed at once to work if the Ordinance were passed, as the greater number of the shares had actually been subscribed. It was of course an essential point in these societies that their existence should terminate at a fixed period when the accumulated fund, or such part of it as had not been lent to members, should be divisible. The Wellington society was intended to terminate in ten years, bat as the calculations had all been based on a scale of in. terest and profit much below what was current in the colony, he believed the society would be able to terminate successfully and profitably in less than ten years. Now, as he had before said, there were two classes who were, as members, to be benefited by societies of this sort: and he would proceed to explain what benefit they would respectively get. A stock being formed as before stated, of 300 shares of £lOO each, a subscription of ten shillings per month, amounting to £6 per annum, was payable on each share. The members were divided into first—those who allowed their subscriptions to accumulate for ten years, that istiJMie 'SlaP'-of the society; and secondly—those who received their shares in advance, or in other words borrowed from the society. The first class paid 10s. pet month on each £lOO share, and so in ten years would have paid only £6O ; but each subscription accumulating at high and compound interest, would have realised in ten years or less £lOO, or the full amount of the share they had to receive. The second class, on the contrary, consisted of those who, also paying a subscription of 10s. per month for the ten years, were willing to take considerably less than £lOO for their share if they received it at once. The process was simple. As fast as money came in, the society would lay it out in paying off the shares of members who desired to realise: and the calculation was that during the first year the society could give £55 for each share so realised, and of course a higher price every year, as shares became more valuable by reason of the subscriptions paid on them. Thus, as at the end of ths first month £l5O would have been re* ceived in subscriptions on 300 shares, the society would be able to pay off nearly three shares. But as there would of course be many members desirous of receiving their shares in advance, the maximum price of £55 which the society can give is, so to speak, put °F for sale in the same way ns Government loan* are put up in Europe. That is to say, the question is asked which member, agreeing 1° pay during the ten years his monthly sa ' scription and interest for the advance maj him, and able to give ample security to ’ |IC society, will take the least sum for bis £l° share? Now the competition among membc 1S will probably induce the holders of three shaft to accept £5O on each share, or probably l esS ‘ At the end of the first month therefore 1 society will, with the £l5O subscriptions, off three shares, taking ample security on re’ 1 property from the parties to whom tbs ® oD ' is paid. At the end of the second mon l would have another £l5O of subscript*® ’ and repeat the process. And so on every ceeding month in the same way, the su tions being continually increased by the a® of interest paid by the parties who ceived their shares in advance. Th u ®» 8 end of the first year the society w° u received and lent £1800; at the 0() . second year £2OOO more, or about., , I at the end ol the third year £6OOO, an I So that by small savings periodica I large sums would soon be lent among I the benefit of members alone. Now t I oil would see what advantages sU , . ; n duS' I offered to persons of small means trioua habits in the acquisit'im*

E*d in drawing their attention to instances of ch advantage, be was sure similar instances iuld immediately come to the recollection of jjjy hon. members who had had dealings with Sal property in this country. There were Ambers of persons in the occupation of land S lease for which they were paying more or Bs rent, and on which they might have exftided years of labour. At the end of their ■rm, unless they had the money ready to buy 9e land, they either lost all their labour or ■ere driven to take up money on mortgage at •n interest of from 15 to 25 per cent, and fremiently more. Even if they had the money, tt'ey lost all the rent they bad paid. He knew 1 case in which a working man had been for wars in occupation of a piece of land, bad brought it to high cultivation, built bis house, «d estimated altogether the value of it to him Kw at £250. Having what is called a pur■asing clause in his lease, he could make the Urr 82 ivl JS.L UX. nniQV't XiIUV ftount on mortgage he would have to pay an Jjrtravagant interest, and still at some day ?jgve to find the principal: but by be- . joining a member of the society he could at Se end of the first month receive the £5O be Minted on the security of his land, and all his lability would be the payment for ten years of perhaps less by half than the pere interest he would pay a mortgagee, jkgain, let the Council look at the case of a person commencing a tenancy now. He would Jjave to pay rent for some years, and then find Money to buy the land or house. The society enabled him to buy them at once upon his ■Baying an annual subscription that in most t leases would be less than the rent alone he Ijtherwise would have paid. When, therefore e society had been some time at work, and as better understood, it was probable the lumber of shareholders would become very greatly increased, especially among the work&g class. He had now, he thought, explained ffiie objects and principles of the societies which the bill was intended to establish, and Riewn the advantages they would confer ; and 'as he already trespassed too long on the indulgence of the Council, he would only detain Bhem by briefly stating that every possible S -Precaution was taken to prevent fraud or mismanagement. It was enacted that the Rules f any society should be subject to the assent ■isf the Government; that all trustees or persons receiving the society’s money should give security; that magistrates should have the Bower of deciding summarily in cases of fraud Mr dispute ; that where necessary a Judge of Blie Supreme Court should interfere for the Society's protection ; and that full accounts Should be periodically published. With such Safeguards he believed the proposed societies grould work most profitably and advantageously, and largely promote the prosperity of Bhe colony by the encouragement of industry [and frugality, and by the facility afforded for the (acquisition of property. I The Attorney General of New Zealand segionded the motion, and the bill was read a second time. | The Council then went into Committee on [the bill.

I On the title being read it was suggested by [the Attorney General of New Zealand that [the title “Benefit Societies,” instead of [“Building Societies,” would be more expressive of the objects proposed by the bill. Consideration deferred. In the first clause Sir George Grey suggested the omission of the words “ of European origin,” to allow the natives, ii they pleased, to avail themselves of the advantages offered by these societies. Clauses 1 to 12 were considered and Committee adjourned. NATURALIZATION BILL. i On the motion of the Colonial Secretary of |New Munster, the Council went into Comimittee on Naturalization Bill. The Attorney-General of New Zealand moved an amendment of which he had given previous notice, that the Governor-in-Chief should be enabled, by proclamation, to add the names of other aliens who might desire to be naturalized, the object of the amendment being to allow the settlers at Akaroa to take advantage of the provisions of the bill. Sir George Grey suggested that the prov-..- a-, ik/x '-'MtuauCu biiuuiu utny uuve luruv iu iuv ugai session of the General Council, so as to render it necessary for the Governor-in-Chief to resort to the authority of the General Legislative Council to sanction what he had done. The Committee then adjourned, and the report was brought up and adopted. CENSUS BILL , The Colonial Secretary of New Munster suggested a slight alteration in the schedule ot Census Bill in the column of “Age,” which he proposed to divide in seven co'unans. The alt eration was agreed to, and report on the bill brought up and adoptThe Attorney General of New Zealand have notice of his intention to move for—lWntn?J e > °X an y correspondence between her . y s Government and the Canterbury As-

sociation, on the subject of the appointment of Justices of the Peace, and other officers for the settlement of Canterbury. The Council then adjourned. Wednesday, July 9, 1851. The Council met at the usual hour; after prayers, on the motion of the Attorney General of New Zealand, the Provincial Councils Bill was read a third time and passed. The Attorney General of New Zealand moved for the correspondence between her Majesty’s Government and the Canterbury Association, of which he had given notice yesterday. The correspondence was laid on the table. BUILDING SOCIETIES BILL. On the motion of Mr. Bell the Council went into Committee on Building Societies Bill. Clauses 12 to 16 agreed to with one or two slight amendments. It was suggested by the Attorney General of New Zealand that the latter part of clause 17 should be struck out, as its effect would be to bring the Society before the Supreme Court in forma pauperis which, for the character of such societies, it would be desirable to avoid. Mr. Bell explained that the intention of the part of the clause referred to was only to enable a petition, which was more a matter of form and did not require much to do, to be carried before the Court, without expense to the Society. After some further discussion the latter part of the clause was struck out. A discussion arose on the prolixity and tautology of the clauses of the bill, and it was explained that they were for the most part copied verbatim from clauses in Acts of Parliament on this very subject, and a reluctance had been felt on the part of the framer of the bill to alter the language of them, as they referred to the appropriation of money by the working classes, and had no doubt been carefully framed so as to meet every possible question that might arise. The Colonial Secretary of New Munster complimented the Attorney General of New Zealand on the plain and intelligible language jn whinh *he of NTntr? were drawn up, and which were, in this respect, entirely in accordance with the Royal Instructions, and regretted this bill had not been drawn up by the hon. and learned member.

The Attorney General of New Zealand said, since the subject had been alluded to, he might be allowed to mention a circumstance that had occurred in one of the first Councils in which he had the honor of sitting, when an hon. member inquired with reference to a bill that had been introduced, whether that was really the bill or an index to it. The Committee then adjourned. The Attorney General of New Zealand moved the first reading of the Crown Lands Amendment and Extension Ordinance. The Lieutenant-Governor inquired whether the Council would defer the time of meeting to-morrow to 4 o’clock, in order to give time for the meeting of the Sub-Commit-tee on the New Zealand Company’s Land Claimants bill. Sir George Grey suggested it would perhaps be better to adjourn the Council to Friday, which would allow a clear day to the Sub-Committee, and he would endeavour to get the Financial Papers ready on that day. Siivh aCOufSe," be ihougiit, WOiiru uv “the" shortest mode of proceeding, and would be found greatly to facilitate the course of business. NOTICES OF MOTION. The second reading of the Crown Lands Amendment and Extension Ordinance, on Friday, by the Attorney General of New Zealand. The further consideration in Committee of Building Societies Bill, on Friday, by Mr. Bell. The third reading of Marriage Amendment Ordinance, on Friday, by the Colonial Treasurer. The Council then adjourned to Friday.