BANK AND STATE

Dominion, Volume 6, Issue 1813, 28 July 1913, Page 4

BANK AND STATE

Sir,—l have noticed a great controversy in tho papers about banking legislation. It is most laughable to those who' can read between tho lines. Tho Bank of New Zealand was practically bankrupt when Premier Seddon came to the rescuo and gave tho Dominion's guarantee. SMrcs at'that time, With J!3 fig. Bd. liability, were practically unsaleable, or bringing a few shillings only. Rome of the leading brewery interests got in on tho ground floor, bought tho shares for next to nothing, got somo of themselves and friends on the directorship, and brought in all tho liquor and bookmaking anil spieler:?' interest into the concern. It is well known that a large number of shares are held by those interested in t.lio Trade and by racecourse bookies. Now we havo this party demanding the Government to withdraw from the concern and let this crowd increase the value of their shares by presenting iliem with a large amount of shares for nothing. Now. our friend Mr. Alassev is not such a fool as all that. He surely is not controlled by tho brewery monopoly, ns thev seem to have been associated with the last Government, therefore have not had lime to over to Air. Mnssev's side. Tf Mr. Mn=s»v is a statesman, why decs lie not mako a State Bank ;it once. Tt is very ensv for liiin lo extern! Ilio nowers of tho I'ost Ollite S<iviii"s Haul- In make if a l.oi'a li'li* affair, lie could dispose of the half-million shares in Ihe Hank of Now Zeal'ind for al'mf. one million, which <vr,nhl a go"d melons for ihe State Bank. Then let ('>« oHier crowd run iheir own revert'. The nlhrr hvil-a dni»'» l-"H]iecs in Hip Dominion would then be nli|r> lo iret n «hare of Government biieiiiess in mor" " - avs (ha•• on". AVhv =li—i|d .they, l.i ..nennli» e d,. and- tho Bank of New Zealand have »U (M Tho- otic*

banks liavo been so loyal to the peoplo of tho Dominion during the depression, whereas the Bank of i\cw Zealand havo been taking the money out of the Dominion and investing seven millions in London at short call. Is no member of l'arliamont bravo enough to speak out tho truth or arc they afraid of tho Bank of New Zealand?—! am, etc., SETTLER, Adelaide Road. [Our correspondent apparently is not aware that a Unit one-half of tho bank's (shares nro held iu London.]