FAIR AND EQUITABLE.

Stratford Evening Post, Volume XXXVI, Issue 48, 2 July 1913, Page 4

FAIR AND EQUITABLE.

'l’lte Auckland Star speaks plainly with regard to the Bank of New Zealand, and the recent action of certain shareholders. It says:—“We venture to assert, without fear of contradiction, that there is not the slightest possibility that the country will agree to being bought out in this fashion. At the same time, we feel sure that any fair and equitable scheme, which fully recognises the sacrifices which have already been entailed upon the shareholders, and takes into account the substantial profit which the State has already reaped out of its investment iu bank stock, will meet with public approval. The case is one that demands tactful treatment, and the true interests of the hank will not he served hy taking up an attitude of hostility towards the Government. And we may further suggest to the malcontent shareholders that even if they object to dividing their profits with Government, it is surely better for them to have the State as a partner than as a competitor. For, if the State guarantee wore withdrawn. a State Bank that would he a most formidable rival to the Bank of New Zealand, would he well within the range of practical politics. As regards the proposed extension of capital, it is hardly likely that the issue to the old shareholders at par would meet with general approval, hurther, we note in passing, : that even Mr Skerreft is doubtful whether the State, which I holds £500,000 of preference shares,- and is, therefore, on precisely 'the same footing, as the rest of the shareholders, who also hold sharps (tp the amount of £500,000. should not be 'entitled to receive its proportion of the new issue. But the discussion of these details is premature, because nothing can be done in the matter without the consent of Parliament.” This view must be largely endorsed by thinking people.