BANK OF NEW ZEALAND.

Wairarapa Age, Volume XXV, Issue 10713, 31 October 1913, Page 5

BANK OF NEW ZEALAND.

REPORT OF PUBLIC ACCOUNTS committee: AN INTERESTING r,F"3.\73. (By Telearas/hr—Trm 4s3oeio<VHf.) WELLINGTON, Last Night. The Publio Accounts Committee brought down its report in the House of Representatives to-day on th® Bank of New Zealand Act Amend" ment Bill. The chairman (Mr Hine) eaid the clause providing for a . sinking fund was struck out. The provision that in event of the winding upof the Bank the assets and reserve stock shall become the property of the shareholders was struck (Kit, The interests of the State were already preserved by legislation. A new clause was added, providing for the vetoing of the using of reserve funds foT the purpose of payingdiyidends, unless the consent of the Minister of Finance is first obtained. The honorarium of directors had been increased from £2OOO to £3OOO, end proxies were limited to 600. • Sir Joseph Ward stated that was: surprised that the committee had meti that morning, in the unavoidable absence of th® Minister of Finance, who was indisposed. Th© Bill was of such vast importance that it should not have been gone on with in th» absence of the Minister.

The Hon. W. F. Massey said th" commercial communitv and the peffpi-.' generally were awaiting the_paß<;u>% of the Bill with considerable intenst.

Mr Oraigie suggested the setting -upl of a Royal Commission, representing the commercial, agrCultural and industrial interests, to inquire what? ooula b* done to better tlio ba .king system" of tiief Pominipto. At the present time the/3 WAS 0f1(T , of money deposited in the !>.'?<> which did not earn one penny of interest. He moved to add to the committee's report as above.

Mr D. Buddo seconded the amendment, contending that a review of the whole position of the financial institution was necessary; Dr Newman said our arrangements with the Bank were exceedingly unsatisfactory, and he had a, lot of sympathy for Mr Craigie's amendment. He favoured the setting up of a Royal Commission to investigate the banking conditions. Sir Joseph Ward disagreed with Dr Newman's suggestion. He stated that in nine casesi out of ten, the Bank of New Zealand was lending this country its own money. In his opinion the legislation now before the House should not be hurried. Ho did not say it should be deferred, bit haste was unwise. Friction existed between the Bank and the shareholders, and he thought it would be a wise thing for the country to own the Bank right out, paying the shareholders fully what -they were'entitled to# But he did not believe they could do that in a hurry. That it could be done with safety, was beyond nit question. Mr Ell endorsed Sir Joseph Ward's injunction to refrain from haste in banking legislation; He moved a further amendment to set up a Select Committee this session instead of a Royal Commission. Mr G. W. Russell said he believed if Mr Craigie's amendment were carried serious hardship would be imposed on the work of the Bank. He at one time believed it would be a good thing to convert the Bank into a State Bank, but now he had serious doubts on the matter. Mr Ha nan f avowed the formation of n 'State Bank, separate from any existing institution. He also agreed with the suggestion to secure information concerning the banking institutions. On division, Mr Ell's amendment was rejected by 45 votes to 18, and* Mr Craigie's was defeated by 41 rotes to 21. Tire committee's report was then adopted.