RE TRANSFER OF THE CORPORATION BANKING ACCOUNT.

Waikato Times, Volume XV, Issue 1238, 5 June 1880, Page 3

RE TRANSFER OF THE CORPORATION BANKING ACCOUNT.

TO THE EDITOR. Sir, — ''Eqaal.md exact justice to all men, mviwed by influence and unbribed by gain" coupled with financial reform was my motto in the action I took in Council and in committee re the banking accoirnt. Sir, with your pevmi-sion, I will quote a few of the m.my reasons that caused me to be the principal mover in the matter. When I was eler-ted ns Councillor I considered it my duty to look strictly after the finances of the Borough, as without money very little cau bo done ; and in doing so I found that the general account was overdrawn to the amount ot 1 600 (more or less) at the Bmk of New Zealand, for which i 0 pet' cent, was eh irged I found an ofScial letter recorded in the Council Clnmbers from the manager of the «-{ii<l Bank re overdraft, demanding strict, attention, and I found that there had been larger sums t> the amount of thousands of pounds lying at the Bank in another account called the special account, for t>e building of the new biidge, ere, upon which only 4 per cent, was allowed, which 1 consider very unfavorable terms indeed for the Borough I moved in Council for a committee to investigate the matter, and the fruits of my labours wns fully reported in your la^t issue. I m,Ly h'-rc state that I was amused and astonished to hear Mr Vialou srate that he was the author of tlu j bulking problem, he being i membra* of the Special Committee, and pledged to scfrecy unt'l all was fettled. I shall givo his own words ab taken correctly hy your short hand ipporter, find appearing 1 in your isMie of the 3rd instant. Mr Vialou said : " I therefore put the mntter to the manager of the Bank of New Zealand whether he could not put the special account airainst the general account and charging int< rebt only on the balance. Hence the tender. I wish it to be underhtood that I did not act officially in this uiatttr. The proposition I m ule was in the course of a conversation." So much for Mr Vialou' s fidelity. To sum up I will here state why I cousidcicd the offer from the manager of the Union Bank to be the most favorable of the two. He utates should theluccount be kept at the Union Ban':, the business will be conducted on tho most favorable terms now current, which, in banking parlance, is as plain as two and two ma; c four. Now for the other Bank — why it is no legitimate offer at all. It is a compromise for the time being until the accounts vary, and then, if the Council had any funds to their credit, they would get no interest whatever. I will here show what I mean.

Ihree months ago. Original terms — Overdraft. ... £600, at 10 %, £60 debit. Special, ... £459, at 4%, £18 credit £150 £42 Present offer (balance), £150, at 8 per cent, £12. At present. Overdraft, ... £500, at 10 %, £50 debit. ►Special, ... £300, at 4%, £12 credit. £200 £38

Present offer, £200, at 8 per cent., £16. When the accounts balance in favor of the special or credit, there will be no interest allowed, according to tender. — I am, &c, E. McGarrigle.