Wairarapa Daily Times. [ESTABLISHED 1878] FRIDAY, OCTOBER 21, 1892.

Wairarapa Daily Times, Volume XIII, Issue 4249, 21 October 1892, Page 2

Wairarapa Daily Times. [ESTABLISHED 1878]

FRIDAY, OCTOBER 21, 1892.

FIRST EDITION.

Beino tbb extended title of iub Wairarapa Daily, with which it is identical

A perusal of the ovidenco taken by the Public Accounts Committee on the petition of the Colonial Bank of Now Zealand is both instructive mid amußiiig. There was a sort of duello between the Hon, Geo, McLenn, the champion of the Colonial Bank, and Mr Holmes, the general manuger of theßank ofNi-w Zealand, in which tho former appeared to sustain a claim lot his hank to receive a share of the Government aocouut and the hitter to dispute it, It was a case where Greek met Greek, but in the tug-of-war a little irenspired to Bhow the difficulties which Governments have to face in dealing with bankers, Id tho course of the duello the following interesting questions were put: -

Mr Holmes : Did you say that you could command sufficient votes in tho House to got tho account dividod, and that if tho Bank of New Zealand refused to acquiesoo in your proposals, you would have a motion tabled to divide tho account among the six banks ? Mr MoLean: I hive told you, and 1 hayo told everybody, that I should not object if the account were divided aniuig (he i-ther banks, but 1 deny that I made the statement you mention, Mr Holmes: Do you deny it, on your honour 7

Mr McLean : On my honour I deny that I have ever said 1 could command sufficient v.otV.s in tho House to force this quest'on to a settlement. But at ihe Bame timo 1 did say that I would bung the question before the members nf the Bnuiie, who, I was sure, would see fair play dene,

It will he noticed that while Mr MoLean obji-oted to the exact words usedby Mr Holmes, he did not dispute tho general tenor of them, We may fairly assume thai tkeOolonial Bank did threaten the New Zealand Bank with its political influence, and was desirous i'o make a combination with it to divide the Government business and to keep at bay other competitors for the account, by the joint influence of the two institutions on members of ibe Legislature, There is some doubt a* to whether one hanking institution could contiol Parliament but judging from the expert evidence published in the report of the Parliamentary Committee two could take up a position that would be irresistible. It' as in Victoria all the associate banks are

let into the swim the position of the Government becomes still more perilous. When the State wants advances the Associated Banks in tinvrordfi of DrNewman,M,H.E., "sweat the Colony all round." The moral is that a Government may keep a straight course with one Bank, but that i\ runs a grave risk with two; while if itdividos its accounts with half-a-dozon it simply gives itself away, and is financially at tho mercy of some six smiling General Managers who have agreed amongst themselves how the spoil is to bo dividod, and who are waiting round tho Btate carcase like amiable vultures.

! Banking appears to be something like dootoiing. If one dootor gets hold of a man be is fairly safe and may recover; but if the patient conies under two his condition is precarious. Should he be mad enough to allow half-a-dozen to physio him he must expect the undertaker to evince a lively interest in bis condition, The impression in&do upon us by reading, the voluminous report of <be Public Accounts Committee on

Ibis question is that one banking institution is quite enough for a_ small Colonial State.' It rnay.hold its awn against one, but it will simply give itself away if it ventures to divide its business with a larger number. Banker* do take an hvteiestin politics,

do like to iufluence politicians and probably in tbe past the Bank of New | Zealand has not been* free from faults of this kind, Tbe new General Manager, however, seems disposed to ) discountenance such influences and if 1 this be bo, the account of the Colony is in very good hands, and Ministers will study the interests of New Zealand by resisting a change.