BANK OF NEW ZEALAND CHAMPIONS.

Patea Mail, Volume I, Issue 52, 9 October 1875, Page 2

BANK OF NEW ZEALAND CHAMPIONS.

ro THE EDITOR OF THE PATEA MAH.. Sir, — One or two of the members of our Town Board, by their anxiety to get an account opened with the Bank of New Zealand, seem to be actuated by a very keen desire to repay personal favors either past or prospective, by their action c m the board. They have advanced no argument in favour of that bank, except that “ as the Bank of JM.Z. was the first to commence operations in the district, it was considered the duty of the Board to support the institution that first came to the rescue ” —of what ? Certainly not of the Board (and I maintain that the welfare of the Board is all our members should consider) ; certainly not of the district ; and if to the rescue of impecunious tradesmen, does it become the duty of a body (corporate) to take their debts of gratitude on its shoulders. It is all very well to say that as “ both banks are on the same footing, they will both charge the same rate for discounts and overdrafts.’’ This may mislead men who know nothing about business, but as Mr Southby aptly put it, “ when they wanted money they would soon find what bank terms meant,” and Mr Taplin, when be talked of discounts, must have had an eye to assisting his pet bank ; to do what its liberal manager proposed to do for the Building Society, when it required money to extend its field of operations—that is, to take the promissory notes of the directors for such amounts as the society required from time to time, and discounting them at the usual rate, 8 per cent, for three months, and then 10 per cent for renewal, making each and every director liable, in addition to the deeds deposited as security. This is the liberal bank from which the directors of the building society had to withdraw their account, and place it with a bank, the manager of wiiich saw his way to advance ono or two thousand pounds as a permanent overdraft, without putting the society to the expense of the stamps and discounts and petty annoyances of promissory notes. Had it not been for the Bank of New South Wales, the Building Society would have been by this time a complete failure as regards keeping pace with the requirements of the district; and Mr Taplin, who is a director, cannot deny this. If this pet bank is such a liberal institution, throwing itself into this place simply to rescue—we know not what—how »s it that with all tho advantage its early start gave it of the choice of position, and the whole banking business of the district, that the other bank in the short time it has been opened here, has rrionopolised, with one or two exceptions, the whole of the business accounts of Wairoa, Carlyle, and Haw-era, as well as those of many of the largest land holders. If members of the Board cannot, or pretend not, to understand what liberality in bank terms mean, business men do, and hence the success of the New South Wales Bank, and the one that is liberal with private individuals is most likely to be liberal with a corporate body. And as I hope to see public works here conceived and executed in abroad and liberal spirit, and as the obtaining of money in a liberal manner is of vital importance to the carrying of the same to a successful termination, I trust the Board will not lend itself to any undue haste to gratify anyone’s pets, but give themselves time to get information, and let this matter be settled by the full Board, as they will find as much difference in the dealings of the two institutions as there is between a Glasgow pawnshop and the Old Lady in Threadneedle street. Hoping that the logic advanced in favor of tho Bank of New Zealand will not be brought to bear in all the business transactions of the Board, as I consider the Board have nothing to do with who started business first or last, but should take advantage of the competition which the progress of the place has given rise to. I am, Sir,