STATE BANK.

Temuka Leader, Issue 1907, 22 June 1889, Page 2

STATE BANK.

TO THE EDITOE. Sik,-—The Christchurch newspapers are too much engaged with important questions —sueh as the history of a man who was buried in a coffin which cost £2OOO, etc. (See L.T., to-day, page 3) —to be able to give attention to such a " frivolous " subject a* that of a State Bank, so I send you a few figures which you may think worth printing. Christchurch papers often represent me as speaking of "my State Bank scheme." Now, I never have done bo, and I specially poiated out —and did last night—that in your letter of Maroh2,lßßs, you advocated issuing notes to give in exchange for miners' gold, advances to farmers on land securities, and that if a National Bank were established all further borrowing from outside would be unnecessary. That letter was what first drew my attention to the State Bank question, and having further studied the pamphlet of the late Hon. J. Bathgate, and Lis speeches on the subject of a State Bank of Issue, and also Mr Macandrow's Advances to Settlers Bill, I did what I could in the way of pamphleteering to force the subject forward. I especially pointed out how the banks manufacture their assets and bank money, by simply adding our securities to assets and giving bank credit —not notes—instead. I also made a great point of the Midland Bailway, which I consider I proved could have been made just as well by a State Bank. We have given away land to the value of one and a quarter millions, and it is by selling and mortgaging the land that the M.E.C. is gong to make what is falsely called Our Midland Railway; and as j the land is to be valued without regard i

to any increased value from the making of the railway, the company calculate in their prospectus that the real value of the land we give them is £2,500,000. We shall all agree with Sir George G-rey some day that " this is one of worst transactions ever entered into by any British Legislature." I want to know why we should borrow from England, because I maintain that the real wealth of New Zealand per head of population is greater than that of the United Kingdom. In 1885 Sir Julius Vogel drew up a balance-sheet showing that the wealth of New Zealand, after deducting 89 millions for indebtedness was 127 millions. This was equal to £227 per head of population. In the United Kingdon the wealth per head is only £249. But this calculation leaves out the difference in nominal values of sheep, cattle, and horses. Our sheep would be valued probably at 4s or 5s per head; in the United Kingdom at 40s or 50s. Same thing with c&ttle and horses. And our mining wealth is undeveloped. Then, again, as for coin, Mulhali says the coin of the United Kingdom is about 80 millions. This is a little ever £2 per head. The New Zealand banks haVe in their hands alone (belonging to depositors on call) about 2| millions of gold and bullion. This gives nearly £4 per head of population in New Zealand; and this does not include coin in circulation. Again, the banks are supposed to be the masters in New Zealand, but their position does not warrant it. Their nominal capital is only about 6 millions, while the wealth of their customers is 127. Their assets are simply their customers' securities, on which the banks back their customers' credit by giving them credit accounts. The above are a few of my figures given last night which papers want "relegated to obscurity," which is the fate they also desire for me. To that end the Weekly Press hopes for the Hare system of election; but an older Weekly Press (December 4) said : "It is astonishing how many people, not only in country districts but in this city (Ohristchurcb), believe that if only we had a State Bank New Zealand would he prosperous." Well, Mr Editor, I told them last night that, as such was the case, I was addressing possibly some of my future constituents, and taking time by the forelocjc. I had a very attentive and earnest audience of, I believe, 100, which is not bad for a man who has been so ridiculed by papers; But where were our opponents? My platform was open to them. J. Miles Vebeall. Ohristchurcb, June 15th, 1889. P.S. Resolution unanimously passed in favor of State Bank last night.