The Temuka Leader. THURSDAY, NOVEMBER 12, 1885. NATIONAL BANK.

Temuka Leader, Issue 1417, 12 November 1885, Page 2

The Temuka Leader. THURSDAY, NOVEMBER 12, 1885. NATIONAL BANK.

Thr National Bank qupslion is gaining grou n d. Manj papers throughout the colony have now pronounced themselves in favor of it, but the beet article tn th" iuljct yet lias appeared in the Donedin llen»ld. This article has been reprinted irito the Watchman, and Las therefore i{aiw'i' a wide circnlation. After having dimmed the causes of the depression, and comiug to the same conclusion as as we did two or three _»ears ago, the Hera'd gives an account of how similar honks to that sa/rgested hav..> got on in Germane. 'lhe Herald says : The experiment has been successfully tried for a century. Surely wlut has done good elsewhere should have a, beneficial effect, heie. A slight sketch of the rxperiment will aid in opening men's eyes to its feasibility, unless they are blinded by prejudice or self-interest. In the latter halt of the last century, many •states in Mlesia and other German provides were left untilled owing tn the rmbarrassmeuts bequeathed by the S j ven Vt-ars' War. wis at. a low fib, and the condition of the landowners *a«, like our own, deplorable. An in teliigenr merchant, of th« name of Buhring Hijog».-Bted the establishment of Provincial Mortgage Banko, under Government control. Their primary object was, by furnishing the land owner with b curtain .iinpiuint of capital, to rescue him from the hands of usurious creditors. The principles adopted were us follow:—Tl". owners i,f the estates hypothecated then. io the bank, and n ceived i'i *otes of nm lfns than £75 each one-haf, or two-thirds, ■if the value of their lands as appertained by iffioial vi.luutors. These notes wei* payable to bearer, and bore interest from day lo day at 5 per cent. The bunt (•barged 1 j.er cent, higher interest for its advarceß than the b< re. This d'ff rei.ee «hs npp'id to cover the expenses of management, ami to form a sinking fund for the gradual redemption of the estates. The Government and th< Batik of Pmsnia undertook to convert iMse notes on demand into caub, but lint was found scarcely to be ever necessary. The advances made wera applied undei ibe control of the b»nk to the payment of incumbrances. The fir».t of these iimtituiona was founded in 1772 in the province i»j Sliest*, where the ravages of war had been mos' revere, a.id it proved eminent ly successful- so much no that the interest ou the note* was reduced from 5 to 4 per cent. During the first eighteen yam of its existence tbis one bank bad advanced upwards of £2,000,000. Its example wsb soon followed tu other provinces', and in 1807, when the famous Minister. Steie bbsumed the rems, (he spsrregn'e advances were £8,000,000. So firmly did ihese banks lake up their positibn in thtinonetary world, that in 1837 they were enabled to reduce their interest to 3$ per cent., and the amount of notes isf.ied h«d tiicri'aMid to Notwithstanding the lowering of interest, the tirice o{ these securities- has been h'gher, and subject to lens fluctuation in the Eutopean market, than that of almost any .jute securities. The wonderful success of these institutions has for its man spring the abolition of usurious interest, and bringing the rate down to an amount which could be paid with convenience The exactions of middlemen were j boohed, arid the needy land owner brong' t into duect contact with the lender.- If s!mjl»r institutions were established io New Zealand, the advantage to the <ett!e'H, and through thorn to the whole community, would be immense. The colony, instead of issuing notes, might floit debentures protected both by the land and the State s;uarantee. They *onl<' be able to obtain as much capital as might bo required at Z\ per cent. Several of the leading railway companies have no difficulty in getting debentures t>.ken up at that rate. The Government m glit accordingly be able to lend to -enler* at 4$ per cent. Thiß would be a relief in tie struggling settlers of a milion s'etling a year. Can anyone show cause why this relief shoo d not be secured without delay 1 Art* foreign v.mpirea to nourish themselves and bl M'd us ;o death! Are we to be fleeced that intermediaries rimy pocket 15 and 20 per cent, of dividends 1 Thev are hanging about us 'iko the leeches of Cuylon, which Irop from the trees on the travellers, and ire e> joying ft bloated existence at the expense'of our iital streams. This must hot be. The settlers have, under Providence, the issue in their own hands. They must hold meetings everywhere, »nd discuss the matter in all its bearings. A powerful league most cover the country with efficient branches. Thorough organisation will gain the day, and eNiabii-h a more prosperniiH condition of aff'irs. We may suggest the name of one who i« well entitled to the compliment of being the first President of the League. In -.eaflon and out of season, in the face ot be sneers of interested parties and th* objection* of the ignorant, no one Ims wrought so persistently to benefit the *etth rs by a supply of cheap money than the single-hearted Junes Macnndrew.