BANK OF NEW ZEALAND.

Wairarapa Age, Volume XXV, Issue 10713, 3 September 1913, Page 5

BANK OF NEW ZEALAND.

BILL INTRODUCED IN THE HOUSE. PROVISION FOR FRESH CAPITAL

(By Telegraph—Press Association.) WELLINGTON, Last Night.

The Bank of Now Zealand Bill was introduced by Governor's message in the House of Representatives tonight. The Hon. James Allen explained that the Bill proposed to make no alteration in the constitution of the board .of directors; to continue the million guarantee; to arrange for the redemption of that stock in twenty years; and tb allow the bank to increase its capital by £3,000,000, but not without the consent of the Minister of Finance. Power is given the Crown to purchase "B" preference shares. No vote is given to the State, but the power of veto is retained. Sir Joseph WareC criticised the proposal to make the Crown pay a premium of 60 per cent on preference shares purchased by the Orowh. ; He also condemned the giving of power to raise £3,000,000 extra capital without again coming before the House. Mr T. M. Wilford contended that the State must retain its, interest in the bank, so as to control the relation between the rate of interest paid by customers on overdrafts and by the bank on deposits, and also to regulate the price of shares and rate of dividends paid. The Hon. J. A. Millar maintained; that State capital had made the bank, and ft was unfair that the shareholders should now try and get rid of the State. The Bill was introduced entirely in the interests of the shareholders. He would resist it to the bitter end in its present form. Messrs A. M. Myers, Payne, and Veitch also spoke. The Hon. James Allen, in reply, said it was intended to refer the Bill to.the Public Accounts Committee, and! also to treat the Bill-as a nonparty measure. He did not think it wise, as Sir Joseph Ward had suggested, that the bank should, come to_ the House every time it wanted fresh* capital, so a wide margin had been fixed, which could only be operated on with the consent of the Minister. He) did not agree with Mr Millar that the State was a half partner in the bank. The proportion was as one to two. That proportion would be maintained. He warned members against raising the cry of a State Bank at this juncture. The time might come when they could start a bank on a State basis, but that was not now. The Bill was read a first time.