NEED FOR NEW BANK

Sun (Auckland), Volume II, Issue 471, 28 September 1928, Page 8

NEED FOR NEW BANK

ELDER STATESMEN HAVF DOUBTS

COUNCIL APPROVES PROPOSE

(THE SL'X'S Parliamentary . WELLINGTU.X, Thurifa/* Some opposition to the gran*,„ of a charter- to the Proposed L,! bank was shown in the Leaial.tiJl Council to-day. The report o£ the Select CommittM on the London and New Zealand Bar, Limited, Bill, was finally agreed a division by - votes to a V” third reading will bo taken to-morruu* In moving that the report, whv.,* proposed that the £1.000,000 paid.--eapital must be in hand in four bo agreed to, the Hon. V. H. Keed | the committee had introduced one , two amendments deemed to be to V* advantage of the Bill. Tb» evident received by the committee went it show there was no opposition on vZ part of the other banks to the nr 0 * posed bank. The bank was not er* titled to limited liability in respect of its notes. 5

iSir Edwin Mitchelson said he could not see his way to vote for the Bil? He moved as an amendment that th* committee on the Bill be revived for the purpose of reconsidering the period in which the capital of the bank is to be paid up, and also the question of percentage payments in respect ol brokerage and commission charges. * The Leader of the Council, Sir Fruru cis Bell, believed the opinion of munv members was that the proposed bank was not really nexxied, but they would not oppose the Bill because it wouL! do no harm. No greater danger waa possible than that of a weak bank. The committee had not given tha council any information concerning; tha grounds on which they based thei? recommendation that the Bill should allowed to proceed with its furtht? limitations. This was a proposal start a bank with £1,000.000, without reserves and with a nominal capital if £3,000,000 unsubscribed. If this charter was granted they should strika out of the Companies Act the provisions barring companies from undertaking banking business.

Sir James Allen said the committee had not expressed any approval of the principle behind the Bill. As a mem* ber of the committee ho was more convinced than ever in his belief that the proposed bank was a positive menace to this country. The promoters had admitted that there was r.o need of it at the present time, but they said that in 15 years more credit would be needed. If that were so, then they should leave it to the present banking institutions to provide it. The Hon. G. J. Smith: If the promoters think there is room for a in’? bank and are prepared to put up th<s money, why should they not get $ charter?

Replying, the Hon. V. H. Reed said the clauses, which it was proposed should be referred bark to the committee had been agreed to unanimously by it. He took exception to the remark* of the Leader of the Council that th« Bill had been viewed with suspicion by the committees of both House* Practically all the amendments mad* by the Council’s committee had bee® suggested by the law draftsman. A division taken on a motion that the clauses proposed by the amendment to be referred back stand part of the Bill, was carried by 22 votes tQ 9. The division list is as follows: Ayes—22 1 Carrington Maclntyre Clark Malcolm Craigie Mander Earn sliaw Michel Fleming Newman Garland Reed TTall-Jones Scott Hawke Smith Tsitt Triggs Lang Weston MacGregor Witty Noes —9 Bell Moore Alison Sinclair Allen Stewart Barr Thompson Mitchelson The report was then agreed to.