GENERAL ASSEMBLY.

Waikato Argus, Volume V, Issue 324, 6 August 1898, Page 3

GENERAL ASSEMBLY.

LEGISLATIVE COUNCIL. Thk Council met at 2.30 p.m. VACCINATION. The consideration of Mr Jenning's motion re vaccination, was further adjourned till next sitting clay. PROGIUC'rS OF BILLS., The Wellington Harbour Board and Corporation Act Empowering Bill to permit further reclamation, was read a second time. The Law Practitioners Amendment and the Wanganni Hospital Empowering Act passed their fiua) stages. ADJOURNMENT. A motion by the Minister for Education to adjourn till Wednesday week was agreed to, and the Council rose at 4.30 p.m. HOUSE OF REPRESENTATIVES. FRIDAY. The House met at 2.30 p.m. THE BANKING BILL. The Premier said he desired to go on with the Banking Bill, and if the Opposition were willing that the Government should do so, it would not be possible to answer questions, ff the Banking Bill were goue on with, he would bring down the Financial Statement in the evening, as it was now ready. Capt. Russell objected to the constant postponement of questions, and thought the Banking Bill should not be brought on again until more time had been given to consider the alterations which had been made in committee, and to allow the President to see whether he should petition the House as to matters connected with, or arising out of, the Banking Bill. The Premier said he knew the President of the Bank would certainly not petition the House on the particular matter referred to by Capt. Russell. ANSWERS TO QUESTIONS. In answering a question whether the ■ time has arrived when the Government will tell the House and the country, with a view to discouraging other applications for railway construction, or letting the Houseand the country know their intention in the near future or future, if he can see his way to finance in connection with the numerous applications already sent in during she session, the Minister for Public Works said he hardly understood the question ; but saw no reason why the Government or the Hou.-e should discourage applications. The iuteniion of the Government in regard to railway and other works would be disclosed in the Public Works Statement. The Postmaster«-General said the Government regarded it as a duty to open Money Order Officers in districts where -there was a large working population far removed from existing Money Order Offices. The Minister for Justice, in reply to a question as to whether a recently-ap-pointed Justice of the Peace had been sentenced to one months' imprisonment in Nelson goal for not contributing to the support of his mother, said he had not knowledge of the case : but was obtaining a report from the Magistrate. The Minister for Justice did not think it necessary, before making appointments, to the Commission of Peace, to take steps to ascertain whether the appointees can read and write. The Minister for Lands was personally in favour or the Fair Rent Bill applicable to all tenants, public and private, in the Colony. The Government hail no intention to extend the scope of the Advances to Settlers Act to enable advances to be made on occupation leases in mining districts. The Minister for Railways said hands had been dispensed with from the workshops because the funds requisite in ther employment was being expended, but in the Financial Statement a proposal would be made as to the rolling stock and other appliances, and he hoped the House would vote sufficient to meet the ease of the workmen ami the necessities of the producers using the railways. The Government had, from time to time, made arrangements to supply public vaccinators with calf lymph, and he thought that an effort should be made for the use of nothing but calf lymph. If possible, a Bill would be brought on this session to deal with the subject. The Minister for Lands thought it desirable that lessees of education reservfs should receive compensation for improvements on the expiration of the lenses. This principle had already been applied to new leases The Minister for Railways did not see his way to grant members of platelayers gangs every alternate Saturday afternoon as a half-holiday. The Government did not intend to bring down this session a Bill to amend thePrirMrsand Newspaper Registration Act, 18Gb, so as to leave it to the discretion of Magistrates when dealing with cases like Spooncr's. The whole subject of forestation was receiving careful attention. The Government Laud Purchase Board intended to re-open negotiations for the purchase of the Levels Estate, in Canterbury, under the Lauds for Settlement Act. RAILWAY ACCOMMODATION. Capt. Russell moved the adjournment of the House so that he might comment on the reply given by the Minister for Railways as to the insufficiency of the carriage accommodation on the Wellinp-ton-Napier line.

The motion was talked out, and the House rose at 5.30 p.m. The House reeumed at 7.30 p.m. UNCLAIMKI) MONEYS. The Unclaimed Money Bill was reported with amendments from the Council. The amendments were agreed to, and the Bill passed. BANKIKfi BILL. The Premier moved that the amendments made in the Bank of New Zealand and Banking Bill be agreed <o. He pointed out that the motions for the recommittal of the Bill could be taken on the motion for the third reading. As to the alteration of the date on which the President shall vacate his office, he intended having it done either in auothcr place or by Governor's message, by substituting 31st December, 1898, in place of 31st March, 1899. Mr Rolleston said the Premiers proposal scarcely met the view of those members who had amendments to propose, as the Bill would not, on the motion for the third reading, be what it was at present in respect to motions for re-committal. He moved that the Bill be re-committed for the purpose of reconsidering clause 2. It was, in his opinion, undesirable that either chamber should elect directors which would have the effect of making the Bank dependent on the Ministry of the day. He was one who believed that the sooner they got rid of this banking concern the better it would be for the peace of politics and the good of the Bank itself, which at present was in fairly good working order. The Premier said that so far as he knew nothing had transpired since Clause 2 had been passed to alter the decision of the House. He was astounded that an endeavour should be made to prevent the colony being represented on the directorate, and pointed out that if the colony were not represented the directors representing the shareholders would not write down losses sufficiently, but would endeavour to declare large dividends. This would leave the liability of the Colony as it is at present. The interests of the Colony would not be considered, and the £2,800,000, for which the Colony is responsible, would not be properly safe guarded- He referred to the increased cost of the maintenance of the Bank; and said it now amounted to six per cent of the total gross business done, and he and his colleagues were doing their best to put the Bank into such a position that ultimately the capitalists would take it over. It would be against the best interests of the shareholders if Mr Rolleston's amendment were agreed to. Mr G. Hutchinson pointed out that the shareholders had to provide for the charges in connection with the Colony's guarantee, and it was to their interest to make it a success. He referred at some length to the provisions in the Bill relative to the discharge of the President, and expressed the opinion that the President's attempt to obtain compensation would be fruitless. The appointmont of Mr Watson had been a great mistake, and he firmly believed that he should be relieved of his present position. Mr Watson's request for an inquiry with respect to certain accounts showed he had not been of good behaviour, and the last balance-sheet of the Bank (which he proceeded to dissect) showed that he had not been efficient in the discharge of his duties. The balance-sheet of the Bank for the past year was as bad, if not worse, than those preceding the scandal of 1894, and none of those responsible for it should remain in office any longer. He had intended moving the re-committal of the Bill in order to provide that the 'compensation to be paid the President should be one year's and not two years' salary and that on any legal proceedings the issue should be raised whether or not the President had been of good behaviour and efficient. Mr Seobie McKenzie asked if equal representation of the colony and shareholders on the directorate was treason to the colcny, what had been the position when the colony was only repre.ented by one director and the President with the power of veto ? The Premier's argument had been in the direction of showing, he contended, that the management of the Bank undtr that directorate had been extremely successful, and no valid argument had been adduced for any change in the directorate. Mr Duthie contended that an efficient control of the Bank by the Government was imperative. The Premier, lie said, had explained to him that the cost of management was 6 per cent, ou the capital employed, not on the business done. Mr Buchanan said he would have no confidence in the Government appointments if the Bill passed, and adversely criticised certain recent Government appointments. Mr Rolleston's amendment was lost on division by 3(3 to 25, and the Premier's motion was agreed to. In moving the third reading of the measure the Premier said there existed a strong necessity for a change in the policy and management of the Bank. Want of exercise of the most rigid economy by the present directors had caused the Government a considerable amount of anxiety, and he quoted the decision to build new bank buildiugs in Wellington aud the appointment of assistant managers us examples of extravagance. Had he power he would do away with the present competition between the banking institutions and their touting for exchanges, as the ultimate result would be that some of the institutions must suffer. He agreed with Mr Rollfcston that the Bank should have peace and be allowed to work out its own salvation. Capt. Russell said the debate on the Bill had shown that nothing but misfortune would fellow the establishment of a State Bank. The present legislative proposals respecting the management of the Bank placed the colony in a worse position than it held under the previous legislation if the abolition of the office of President and substitution of Government - appointed directors did away with any continuity in the management. After dealing at some length with the proposed treatment of the President, he drew a comparison between the extravagance of the Government with respect to the public buildings and the careful expenditure of the Bunk on their buildings. He intended to vote against the third reading of the Bill, as its provisions would, benefit neither the colony nor the Bank. Hon. Mr McKenzie said that the Government were not responsible for the policy of the Bank ; but were responsible for the directorate being so constituted that it has the conlidence of the people. A periodical change of directors would be one of the best safeguards possible of the colony's interest, though he thought if the directors left the management of the Bank to the managers as was done by the National Bank, its management would be better. The Bank should not be a political machine, and he repeated a statement he had previously madd that if the Bank dabbled in politics it would either have to go into liquidation or be scld. He did not consider the House was treating the President badly in granting him two years' salary as compensation for the abolition of his office. He thought the proper thing to have done was to have made Mr John Murray President of the Bank, as he would then have been available to prove the state nieuts made by him on which the State guarantee had been decided. Mr Montgomery considered that the action of the Government in introducing the Bill at the beg'.uning of the session, and pushing it forward, showed that the Cabinet were in earnest about it. He objected to the proposed concellation of the President's contract, as it would create an undesirable precedent. (Left sitting, at midnight.)