THE BANK OF NEW ZEALAND.

Press, Volume LIII, Issue 9365, 14 March 1896, Page 7

THE BANK OF NEW ZEALAND.

Tbe London correspondent of the Sydney Daily Telegraph writes:—"lt has leaked out that the sudden apathy of New Zealand with legird to the removal of their loan business from the Bank of England to the Bank of New Zealand results from the diecovery of an awkward passage in their contract with Threadneedle street. This guaranteed not only that the interest of the loau3 floated by the Bank should be distributed by them, but that "the principal shonld be tepaid there." Of course, if this prove to bo so, the question of the removal of the inscription of stock is at an end. No colonial Act of Parliament can over-ride a definite contract. I hear, however, the New Zealand Government solicitors hope to set aside the contract on various grounds." The point, cays our contemporary, is of interest. The New j Zealand Government have made much of transferring all their London business to the Bank of New Zealand, and it may be well to quote the terms of the original prospectus of the 4 per cent, inscribed stock, now amounting to £29,150,302. This stated as follows :— *• Tho stock will bear interest at the rate of 4 per cent, per annum, payable half-yearly at the Bank of England on the Ist of May and Ist November of each year until the Ist November, 1929, when the capital will be repuid at par. The books of the stock will be kept at the Bank of England, where all assignments and transfers will be made free ot stamp duty." Thia definite announcement that the interest will be payable at the Bank of England until 1929, and that the books will be kept there, ought not to be set aside. This was the first of the inscribed stocks, and its success at the time was largely due to the Bank of England taking it in hand. Probably the original contract for the stock contained the same provision, and the question is whether it is right that there should even be an attempt to set it aside.