Parliament.

Clutha Leader, Volume XXI, Issue 1041, 6 July 1894, Page 3

Parliament.

« THURSDAY, JUNE 28. In the Legislative Council — Sir G. Whitmore moved that a contmittee be appointed to prepare, a loyal address to tho Queen congratulating hor on the birth of a son to the Dukp of York. Ihe motion was agreed to on the voice*. — In the House of Representatives — Captain Russ«H rose to a question of privilege, and said that in the face of the Premier's statement the previous day Col. Eraser had cloarly no right to accompany (he Speaker as Sprgpant-.it-Arms to Government House to present the address to the Governor. Col. Fraser was not an officer of the House and his presence in the Chamber was a distinct violation of the House's privileges. After a short discussion Captain Russell's motion was put and lost by 45 to J6. Mr Seddon gave notice to move next day that Nr Guinness be appointed Chairman of Committees. Mr Reeves moved the second reading of the Shops and Shop Assistants Bill which he explained was exactly the same as the Bill of last year. After a long discussion the motion for the second reading was carried. The Industrial, Conciliation, and Arbitration Bill, and the Conspiracy Law Amendment. Bill (which puts labour unions on the same footing as other persons regarding conspiracy) were read a second time. FRIDAY, JUNE 29. In the Legislative Council — ■ Sir P. Buckley, on presenting the report of the Fox Commission, made a personal explanation. He referred to the editor of the Post's affidavits attached to the report, in which. Mr Gillon stated that he had obtained the information regarding the correspondence without any assistance from any member of the Government or by any dishonorable means, and Sir P. Buckley said he had borne the suspicions of disloyalty of his colleagues for a long while silently, but now he was at liberty to assure the Council that he had never divulged anything contained in the report nor had his private secretary, his messenger, nor indeed any persons, so far as he was aware of, in the service of ihe Government. — Sir G. Whitnore gave notice to move on Tuesday that the Council is satisfied with the explanation of Sir P. Buckley. . BANKING LEGISLATION. In the House of Representatives—*On the House resuming at 8.30 p.m. the Bank of New Zealand Share Guaranatee Bill was received by message from the Governor. In moving the second reading of fche bill, Mr Wa-d said he was assuming a responsibility which would not have been taken but for the necessity of the case. After referring to the crisis in the sister colonies last year, he said unprecedented influences in Ne<v Zealand created the lowest standard of values in her staple exports last year, this being followed by a bad harvest. This was reflected in the financial institutions, and especially on the bank which held the Government account, and which was doing the largest business in the colony. The Government placed itself in communication with the confidential agent of the bank and after mature consideration decided that it was essential in the public interest that action should be taken without delay. The Government recognised that no institution was deserving of assistance at the expense of the taxpayer, but they did not propose to assist the bank at the expense of the taxpayer?. The Bank of New Zealand was practically a national institution and the Government had to avert a great crisis. It was found that the bank's capital required enlarging. A measure was passed last year which would have enabled the bank to do this for itself, but owing to exceptional circumstances obtaining in London and the colony it was unable to do so. "The present bill proposed that a guaranteed increase of the capital should be made to the extent of two millions. The Government had desired to reduce it to a half or less, but the representatives of the bank had pointed out that this would be inadequate as it would be necessary to maintain its credit otitsids of the colony and if only one million were found and utilised in the ordinary business credit would end on its exhaustion. The million for ordinary business was required for advance against produce during the next half year. The other million would be invested as the Colonial Treasurer might approve. The paid up capital fund amounted to L 900,000 and that, with the reserve liability on shares, amounting to L 1,500,000,, 500,000, must be exhausted before any claim could be made on the guarantee, and there was a cash reserve of L 1,400,000., 400, 000. Thus the security was adequate enough. The bill was to provide against the happening in future of what had happened in the past. Alter explaining the provisions, of the bill Mr Ward went on to say that it would be complained that this was tho creation of a State IJank and that a State bank was a bad thing, but to have such State supervision, and to give to the leading bank of the colony a position similar to tliat which the Imperial banks take in Germany and which the Bank of France takes in • France, would be a good thing for the

: whole of the financial institutions of (the colony. The House was now asked to decide as to the good or evil of the colony for many years to come. : Captain Russell said that this was an occasion on which it- would be reco^nispd that there should be no attempt to gain a party advantage, but to approach the question with a grave sense of duty. There was one paragraph, however, in the Governor's Speech which said the. position of New Zealand was eminently satisfactory and he thought it a pity that Miniffters, knowing what they must have known only a ; *'eek ago, should have put such words into His Excellency's mouth. He contended that no member of the House, except those on the Government bench, exactly understood the natare of the bill. They were asked to guarantee '< two millions of money under the bill, : but he should not withhold his consent as to do so might produce a great disaster. He had carefully considered the matter and he had come to the conclusion that even a guarantee by the colony of two millions of money was not such a great disaster as would be caused it the Bank of New Zealand had to close its doors. to-morrow*. Ho thought at the same time that a heavy liability would fall on the tax-payers by this -bill. Is seemed to him they were in great danger of establishing a State bank. He sincerely hoped what the} were now doing would prove beneflcal to the colony. Mr G. Hutchison said this was a loan bill for L 2,000,000, which was not to be used by the colony, but by another institution and for which LSO,OOO a year would have to be paid in interest. He thought the bill should be referred to a committee -so tha 4 ;. it might receive fuller consideration. Dr Newman, Messrs Thos. Mackenzie, Buchanan, and Hogg also spoke on the bill. Sir Robert Stout said he saw no reason whatever for sending the bill to a committee. They had the assurance of the Colonial Treasurer that the bill was urgently required, and if it were to pass there was no occasion to waste any unneceseary time over it. Mr Seddon said the Government were asking Parliament to accept a grave responsibility by this bill, but a crisis had arisen which it was necessary should be met, Referring to Captain Russell's remarks about the paragraph in the Governors Speech about the satisfactory condition of the colony, he said that at the time the speech was written they had every reason to congratulate themselves upon the prospects of the colony, bub this present crisis had suddenly arisen, and ifc was for the House, by passiug the bill, to dispel the cloud. Several other members having spoken, Mr Ward, in replying, said that if the bill were delayed till to-morrow morning, as suggested by some hon. members, then the House would not bo asked to go on with it at all and the responsibility must rest with those who delayed the bill. Motion for second reading of the bill agreed to on the voices. The bill was then committed, re-, ported, and put through its final' stages. The Bank Shareholders Bill and the Bank Notes Issue Bill were put through all their stages without discussion or amendment. • The three banking bills were also introduced in the Council, where they passed through all their stages before the Council rose at 4.10 on Saturday morning, and immediately received the Governor's assent. Mr Murray has furnished the following memorandum to the Press Association : — ' A variety of adverse conditions which have in the last year or two, more especially in the last year, injuriously affected the producing interests of the Colony, have of necessity reflected on its chief bafnking institution. Shares in the Bank of New Zealand became greatly depreciated in the market, and rumors were persistently put about which, however baseless, had a prejudicial effect. The situation was unsatisfactory and might at any time have become dangerously accentuated. Under these circumstances I recommended to the directors that the Government be consulted. To this they agreed, and asked me to represent them. The Government at once recognised the importance of placing the bank upon a thoroughly substantial footing, and it was determined to ask the Legislature to authorise a colonial guarantee to an issue of L 2,000,000 of fresh capital, all to be paid up. This will give a total paidup capital of L 2,900,000, besides one million of reserve liability still to fall back on, making the Bank of New Zealand one of the strongest banks in the colonies. Shareholders may I'ely upon it that the measure is in their best interests, as well as in those of the Colony. Their shares are now much depreciated, and had the bank been left to drift, worse would have followed. I cannot foresee prices and seasons, nor conditions which make for prosperity, but I am persuaded that better times must come. The operation now arranged preserves to shareholders the entire goodwill of their business which an ordinary issue of shares would not have done, and while some sacrifices are for the present inevitable, I am confident that the ultimate outcome willbe reinstatement

of shares not merely to par value but to a premium, whereby these sacrifices will be in a good measure recouped.