EARLY BANKING

Wairarapa Times-Age, 15 February 1940, Page 8

EARLY BANKING

PIONEERING NEW ZEALAND THE FIRST CURRENCY. I SPANISH DOLLARS USED. I ; The history of banking in Now Zoa- ; land is largely one of the commercial and industrial progress of the country. - For that reason "Pioneering New Zeai land," the story of the Bank of Nc-w ‘ South Wales in New Zealand, which has just been issued, is an important ’ contribution to Centennial literature. , It throws interesting sidelights on , events as seen by an institution that ; played a part in the finances and trade I of the country even before the early ' days of colonisation. ’ Before- New Zealand became part of the British Empire a trade in tlax, ' timber and tattooed and preserved heads, was carried on to a great extent i through. Sydney. The Bank of New . South Wales first opened its doors in ■ Sydney on April 8. 1817. There was then no sterling currency, and as in Now South. Wales, the Spanish, silver dollar was the most common of the few classes of coins which wore used in New Zealand. The missionary, the Rev Samuel Marsden, castigated some of the missionaries for giving dollars to the Maoris, realising they would r.urcliase muskets with them in Sydney. WEALTH FROM WHALING. It was not until after 1825 that the Bank, of New South Wales ceased quoting its position in dollars in its annual balance-sheets and, although by 1826 the dollar ceased to be a medium of exchange in New South Wales, it was circulated much later in New Zealand I owing lo the operations of American whaling ships. As late as 1839 33 American whalers tool: away over . 1.000,000 dollars worth of whale oil" in six months. The Bank of New South Wales entered directly into the banking business in New Zealand when in 1861 it look over the branches in the colony of the Oriental Bank Corporation. The Auckland branch was opened first, on June 11, 1861. DAYS OF THE GOLD BOOM. The early history of the Bank of New South Wales in Now Zealand is largely concerned with developments in the South Island,, the Maori wars severely handicapping trade in the North. The goldmining boom-, in-the South Island led to a considerable extension of banking services, and the bank's officers were called upon to perform arduous and often dangerous duties. There were bank Jobberies, unexplained murders and hold-ups. ■Reference is made to the land boom ’of the 70';; and the slump of 1879 and the part played by the bank. The leank also came through the financial crisis in .Australia and New Zealand in 1393. a crisis which caused the failure of many building societies and the susnension of several banks in both countries: An account of the experiences of the bank's branches in Hawke’s Bay after the disastrous earthquake of 1931 discloses methods employed -in reconstructing lost ledgers. The !ede.e> keepers used telephone books and electoral registers io aid their memory regarding the names of the accounts, but the actual balances to the credit of customers were often remembered without any assistance.