N.Z. LOAN & MERCANTILE AGENCY CO.

Temuka Leader, Issue 2528, 13 July 1893, Page 2

N.Z. LOAN & MERCANTILE AGENCY CO.

The news of the suspension of the New Zealand Loan & Mercantile Agency Company will bo received with extreme re-grot throughout the Colony. The suspension will, of course, bo only for a few weeks, perhaps days, and, though it uniy cause some inconvenience in tlu meantime, we cannot believe that it will have any serious oJl'ecfc on this colony. "iiiC .N.Z. Loan & Mercantile is no bogus company, it is one of the largest and soundest concerns in the Australian Colonies, and it is astonishing how people could have beon so mad as to rush an institution behind which there is such an immense capital. The subscribed capit. 1 of the company is £4,000,000, in 160,000 shares of £25 each, of which only £2 10s per share has been paid up. That means, of course, that the company has un-called-up capital of £22 10s per share, or a total rosorvo share capital of over 3£ millions, together with a reserve fund ci £006,G48. Thus tho company has the best part of £4,000,000 still behind it, and as the shareholders are bound to find the moneyif called upon to do so there cannot be the slightost doubt about the stability of the institution. It is, in fact, tho safest and most stable we havo ever heard of, and that anyone Bhould doubt it for a moment is evidence of tho frenzied condition to which the panic in Australia reducod tho public mind. How tho company's embarrassment has arisen is easily seen. Instead of calliug up its own capital it has taken money on fixed deposit and lent it out on mortgage. Now the depositors are demanding theh' money back, but the company has lent it out, and cannot get it all at once, and hence the trouble This difficulty, of course,will bo soon gotjovor ; it is alleged that they want only half a million to put them right, and that they can easily raise it by making a c.iU on the shareholders, At any rata we

do not look position as very serious, and as we are assured that this colony has in no way contributed to the embarrassment it is to be hoped that it shall not sufFer in any contingency that may arise. We notice that the Bank of Now Zealand desires it to be known that it has no connection with the .New Zealand Loan and Mercantile Agency. Of course this is true, but we do not think the bank need be ashamed of it if it had. Thoro can be no doubt of the Company's stability. No one need be afraid of getting 20s in the £, out of it, and we shall bo greatly surprised if it does not open again in a very short time.

THE CADMAN-REES DISPUTE. The Cadman-Rees dispute culminated in a dramatic climax last Tuesday in Parliament. Mr Cadman said he was williug to resign his seat and go to Auckland and contest Mr JJees's seat with him if Mr Rees would accept hiß challenge. Mr Rees did so at once, and thus both their seats became vacant. Mr Cadman at present represents the Thames, but as he will not stand for that a new member will be elected for it. Mr Rees represents Auckland city, and here the contest will bo fought out botween Messrs Cadman and Rees. Like the other largo cities, Auckland city elects three members, but as there will be only one vacancy the whole of the constitutencies will vote in the contest between Messrs Cadman and Bees. The vote will therefore be a very large one, and it is quite possible that neither of the two will be elected. They are both Liberald, and it is not at all improbable that the Opposition may run a candidate and parry iu-u in between them. There can be no doubt but that Mr Cadman's action.is plucky. Mr Hoes is an Auckland man, and it is c«rtainly a plucky thing for Mr Cadman to go iuto Mr Rees's own constituency to tight him. The discussion brought out Mr W. 0. Smith, who was partner with Mr Cadman in the land transactions, and he made very serious charges against Mr Rees. He said that what Mr Rees was aiming at was to get certain native land bills passed so that he (Mr Rees) might be appointed Chairman of the Native Laud Board at a salary of £I2OO a year and travelling expenses. He also showed several instances in which Mr Rees had trafficked in Native lands. Mr Rees denied all these statements, but who can tell who is right and who is wrong. It appears that trafficking in Native laud is a great temptation to every one, and that no one cm deal in it and remain honest. The debate which occupied nearly • the whole day was carried on chiefly by the Opposition, while the Government and their supporters took very little part in it. Why the Opposition should figure so prominently in a matter which did not concern them is difficult to understand unless they wish to waste the time of Parliament so that nothing shall be done.

FINANCIAL DEBATE

Mr Fish jumped the claim of the leader of the Opposition last Tuesday night in Parliament. It is always the business of the leader of the Opposition to open the Financial Debate, but when the question came up Mr iiollestou was not ready and he asked for an adjournment until the following afternoon. The debate had already been adjourned from the previous week to suit Mr Rolleston, and the Premier objected to further delay. While the Premier and Mr Rolleston were thus arguing the point Mr Fish jumped up and proceeded to speak, but Sir John Hall realising the incongruity of the position tried to intercept Mr Fish on a point of order. This was not sustained, and Mr Fish went on with his speech, in the course of which he complaiued of the manner in which the Opposition tried to prevent him from having " a cut in." This is a big blow for Mr Rolleston ; in fact he appears to bo falling behind altogether. For one thing, however, we ought to feel thankful. The greatest Parliamentary windbag has spoken, and so much of the debate is over.