The Tumeka Leader SATURDAY, DECEMBER 21, 1889. BANK OF NEW ZEALAND.

Temuka Leader, Issue 1985, 21 December 1889, Page 2

The Tumeka Leader SATURDAY, DECEMBER 21, 1889. BANK OF NEW ZEALAND.

This Bank of New Zealand has again run the gauntlet, and, judging from the most recent reports to hand, it has come out of the ordeal successfully. There can be very little doubt now as to what is working behind the scenes. A ring of capitalists are trying to break the bank with the view of buying its assets up cheap. If the bank were to suspend payment it would cause the greatest panic in this colony. Its rammifications are everywhere; more than half -the country is in it* hands, and if any accident were to happen to it the result would be a great disaster. We have on a previous occasion explained how it wciuld work. Ihe lands over which the bank helds a mortgage would all be thrown on the market at once, property would depreciate in value, and many who are comparatively wealthy to-day would find themselves penniless to-morrow. We may all dread such a catastrophe, hut evidently this is exactly what the rings are aiming at, because it would give them an opportunity of becoming millionaires. The patience and good sense of the people, however, is likely to thwart the money-rings’ villainous designs. They are behaving splendidly, for it is really a matter of surprise that there has not been a rush on the bank long before now. We have to tell them that unless some unforeseen circumstances occur there is not the slightest danger of the bank. At any rate it is absolutely certain that the bank is far and away sounder now than ever it was before. The bank has lost, according to the authenticated report, £300,000 of its capital, besides the reserve fund, hut this has been more than compensated for by the issue of fresh shares. What has happened is this: All bad debts have been wiped off with fresh capital. That means that the hank has been made a great deal more substantial than ever. Besides, it should not be forgotten that the liability of the bank is double its capital; that is, every shareholder would have to pay twice the amount of his shares to make up any deficiency, The present capital of the bank is about one and a-quarter millions, and the shareholders would have to find another one and a-quarter millions if things came to the worst. The bad debts already struck off by the bank amounted to close on a million, and this, together with the one and a-quarter millions extra the shareholders would have to find and the one and a quarter millions capital, would surely be sufficient to cover any deficiency. If things come to the worst, therefore, the depositors of the bank would be sure to get 20s in the £, so there need be no fear on their part of any loss. Besides, the goodwill of the business is worth a great deal; it is at present earning handsome profits, and with careful management it is bound to improve. It is painful to us to see its management removed to London; it is an admission that we in this colony cannot manage such institutions, but there can be no doubt that it will improve the position of the hank, and at present that must be the first consideration, Ihe National Bank was a few years ago in a very weak position, but the management was removed to London, and now no one questions its stability. It will be so with the Bank of New Zealand. We regret to say that it has been for years in very bad hands, out of which it has emerged considerably injured. One thing which we would like to refer to is the greed, the avarice, and the callous-heartedness of the moneyrings. They have no care whom they may ruin so long as they can make money themselves. They know full well the ruin and misery which the “ bursting up” of the Bank of New Zealand would cause, hut that is nothing to them. They would “ burst it up” to-morrow if they could, so that they might fatten on its downfall. We have frequently been blamed for writing against this class; we have made enemies through it, hut we ask all sensible people, after seeing their actions with regard to this institution, can anything too had be said, of them ? We do not think so; we think that all honest men should join together to curb their influence in politics and but of it. They, are a menace and a danger to society, and the day is not far distant when steps must be taken to curb their repacity.