THE NATIONAL GUARANTEE.

Auckland Star, Volume XXIV, Issue 208, 2 September 1893, Page 5

THE NATIONAL GUARANTEE.

PLEA FOR A STATE BANK,

'BY TELEGRAPH.—PARLIAMENTARY

REPORTER.)

Wellington, this day.

Commenting on the banking scure at Auckland yesterday, the "New Zealand Times " cays :—•' Australian experience has proved to the world that the besb cure for these unreasonable panics is to make national credit available for emergencies." Tho same paper goes on to commend the Government for so promptly passing a measure to meet the case, and adds, " the time has come for asking why should the national credit be used for supporting a system which breaks down periodically by reason of its own unsoundnees 1 If the national credit ie to be used, leb ib be used for the benefit of the people ab large, not for the benefit of the section more orlesa large of individuals who hare placed their reliance on Boards of^Directors who understand nob the things they undertake with learned gravity to expound, The application of the national ciedib in emergencies suggests its permanent employment. Tho logical outcomo of the Legal Tender Act is the establishment of State banking on a basis not metallic, bub of equitable I values."