The Waikato Argus GEORGE EDGECUMBE, Proprietor. TURSDAY, OCT. 13, 1896.

Waikato Argus, Volume I, Issue 42, 15 October 1896, Page 2

The Waikato Argus GEORGE EDGECUMBE, Proprietor. TURSDAY, OCT. 13, 1896.

WItKN commenting upon 1110 ri'])oi( of tho Banking Committee in 1.-tsl issue, wo only touched incidentally nit dm llio fuet that the committee stated that " Tho balance-sheet of the Colonial Hank, dated .'list August, 18!)0, did not fully disclose tho position of the Colonial Bank. This will be apparent when it is mentioned that the whole of tho accounts, which subsequently figured in the A, B, C, and J) lists, wore put down in it as good assets. Tlio Committee consider that the position of the Colonial Hank, as disclosed in the examination which preceded fho purchase agreement, shows that mismanagement must have taken place, the responsibility for which rests upon the directors and officers of tho institution." This is a mild way of putting the cise, but it. means nevertheless that a balance-shoot was cooked and published, and as the Committee very properly points out the responsibility for this rests on the shoulders of the directors and chief officers of the Colonial Sauk immediately prior to, and on the l<Jth August last. "Who were the officers responsible for this, and what position in the Banking world do these gentleman hold now. We find upon reference that they were Messis Watson and McKEN/.rK. The latter gentleman was General Manager of the Colonial Bank on the 13th August, and Mr WATSON had about three months previously transferred his services to tho Bank of New Zealand and Mr Mi.Kkn/.IR has now been associated with him, and tho two hold tho most responsible positions in the gift of tho directors of tho Bank of New Zealand, the welfare of which depends in tho very highest degree upon their capacity and strict integtity. The successful conduct of a Bank is impossible unless those who have the management of its affairs enjoy the confidence and respect of its customers. To our mind it is impossible, after the facts divulged and the remarks of the Committee, that these gentlemen can have either. This being so it is clearly to the interests of the Bank and the country th tt, they should at once be replaced by men with an unblemished banking career. It is a question for lawyers as to how far the disclosures would relieve the Bank from responsibility if the appointment of these two officials were at once cancelled. In any case it appears to us that it would he wiser that tho Bank should if necessary, pay compensation than that they should bo retained in office. It is preposterous that the mismanagement of one Bank should be a stepping stone to tho highest positions in another.