The Press. SATURDAY, OCTOBER 26. 1880.

Press, Volume XLVI, Issue 7451, 26 October 1889, Page 4

The Press. SATURDAY, OCTOBER 26. 1880.

There can be no question of the wis-; dom, or indeed of the necessity, of the advice tendered by the Director. the Bank of New Zealand to the shareholders, to remove the headquarters of the Bank without further delay to London. It is a pity, a great pity, that the Bank could not continue to be managed in the colony. But after such a cruel attack on the part of one from whom the Directors had a right to look for assistance and support, it is obvious that their position has been weakened, and their power to serve the shareholders so greatly impaired as to render it expedient to take the course which has been recommended. We are glad the Directors have had the resolution to face the question, and we cannot doubt that the success of the new departure will approve the wisdom of their decision. As the' Chairman put it, no damaging insiimation of want of proper candour will be able to be maintained against the London Board, while it wUI be far more advantageously situated for securing the confidence of the Bank's constituents ia Great Britain than a

coloni il Hoard can be. We have rw '-earabout theT result. The Bank lias ft thoroughly good businees, and in the fullest sense of the word excellent connections. It la quite true that the figures laid before the meeting at Auckland on Thursday were not of the coviettr de rose character to which we were accustomed under the old administration. Captain Colbeck's speech, though marked by a slight tone of apology, was a calm, straightforward, and business-like exposition of the position of the Batik's affairs, and he had evidently the entire sympathy of the shareholders with him. As he put it there was nothing brilliant in the outcome of the half-year's operations, but in view of not a few difficulties, and of the closing up which the Bank has been effecting, it ought to be regarded as satisfactory. Indeed, the fact that the Bank has been able so soon after the report of the Shareholders' Committee to carry on the profitable business whioh the balaucesheet disclosed, says everything for the great strength and vitality of the institution.

We should have been glad if our article could have closed here, or if perhaps we could have devoted the rest of our space to friendly anticipations of the future in store. We regret that the speech of Mr. Buckley has imposed upon us a very different duty. Whether Mr. Buckley is right or wrong in his facts is a question upon whioh at present we do not feel called upon to pronounce an opinion. Assuming him to be right—and we make the assumption only for the purpose of what we have to say—Mr, Buckley appears to us to have put himself entirely in the wrong by the manner in whioh he has chosen to bring the facts forward. Mr. Buoklbt was one of the Committee of four gentlemen who last Ootober presented co the shareholders that drastic report upon the affairs and position of the Bank. The report was signed by the late Mr. Justioe Gillies as Chairman, Mr. Buobxby, Captain Colbeok, and Mr. McLean, and it was presented to the meeting as the unanimous report of all four. Mr, Buckley himself occupied the chair when the report was thus presented, and it cannot be doubted from his known position, both in the Bank itself and as a man of business generally, that he took throughout an active and prominent part both in the drfiwmg-xip of the report and in the" preliminary investigation which led to it. The report specially attributes it to the "prevision of the Inspector and the "efficiency of the Bank's staff" that their work was facilitated; and almost its earliest sentence is suoh as to dispel the notion of there being any attempt in any quarter to hide from them the full extent of the facts. We will quote it- " Our examination disclosed •' a mass of securities taken in " support of . weak accounts, the " value of which had fallen greatly; " and many accounts in liqtuda- " tion, or which ought to be " so, the cover for which had become " obviously inadequate; altogether " involving losses whioh the Directors " had not faced, but which, upon a «»rigorous examination, we feel oon"vinoed will absorb not only the l " whole of the reserve fund, but also " nearly one-third of the paid-up " capital of the Bank, say £800,000 in " all. The data supplied to us are " of a dear and exhaustive character, <( amply authenticated, and after minute " and careful examination of the various " accounts and assets we are satisfied " that under good management and " judicious realisation of securities the " amount named should cover all " losses.'- This is what Mr. Buckley put his name to just a year ago. Last April he again presided at the halfyearly meeting, and did not say a word to lead the shareholders to suppose that he had in any respect modified the: opinion upon ;.i»-_{i^ , led them and all others interested in the Bank to act. He now-tells us that the accounts which last Ootober he represented himself as having " carefully examined,'' have now turned out to be "so unreliable and mislead- " ing, as well aa the certificates being to authenticate and sup- " port the several estimates, Jlge " Committee would need to have taken " at least £250,000, or just one-third "more than the Bank assets." > <Upon the facts, we say again, we have no opinion now to offer. What we have to say is that even assuming them to be as Mr. Buckley now, for the first time, states, he ought to have made his statement sooner and in a different manner. He ought to have made it before parting with a single share, either on his own account or on that of his colleague on the Committee, He ought to have made it, not in the: shape of a speech, whioh the shareholders were to take for granted, and! to act without further inquiry, but as the basis of a motion for] another Committee, charged to leaveno doubt this time as to what really | was the position of the Bank, „ | . Mr. Buckley expresses his willingness to meet the shareholders at any' time, and tender full explanations. He must forgive us for telling him! that ho is not in a position, after what he has done, to defer his explanation. If he really has anything; further to explain, his explanation! ought to have preceded, not followed,; the charges he is now allowing himself to make against others. He does, not, 98 the lawyers say, come into' Court with clean hands. He has added all the weight of his name to a report and to proceedings upon that report, upon the faith of which capital haabeen brought into the Bank to the extent, including liability, of nearly a million sterling. These new sharp-; holders invested their money on the strength of recommendations made by the Shareholders' Committee, of which! Mr. Buckley was a prominent member. If, as he now tells us, he discovered some time ago that the statements made in the report were unreliable, it; was his imperative duty at once to inform those who had placed reliance in him that he had changed his 1 opinion. When it was exactly that he first began to doubt the accuracy of his own representations he has noVin-j formed us. Business men at -the' meeting put it that the position has; not been essentially altered since April last, when Mr. Buckley made the speech from the President's obair. Gn that occasion, as we have already said, not a syllable was uttered by the Chairman giving the slightest indication of dissatisfaction. If he had any

he kept them I into his confidence at that!tfi*7 I soon as he had made up his F the matter, he kept his B<Hs a Ued rk2 latious to himself till he had _»T2_ of his shares. If he had bee* 1 ' ordinary sharebroker he would ha* H felt bound in honor, we should bW ft thought, to give the benefit of an, f discovery he thought he had m_7 f • t« .those , bought f upon the strength of representafom I made by himself. But for a DireetoV I a newly-appointed President, broueh. I in upon the faU of others, who wbm f thought to have misconduoted then? I selves in the management of the Bank I and had fallen because of I management, for him to»he guilty S f so serious a misuse of his position t f this betokens is indeed the last tbi_j P that could have been expected. f f