Evening Post. MONDAY, SEPTEMBER 3, 1894. THE BANK OF NEW ZEALAND DIRECTORS.

Evening Post, Volume XLVIII, Issue 55, 3 September 1894, Page 2

Evening Post. MONDAY, SEPTEMBER 3, 1894. THE BANK OF NEW ZEALAND DIRECTORS.

Under ordinary circumstances the election of Bank Directors is a matter which concerns only the shareholders of the Bank. It is on a par with an election of Directors ot any other trading oompany. The coming election of Directors of tho Bank of New Zealand is not, however, to take place under ordinary circumstances. The Bank has, in the words of its present Chairman, become practically a State institution, and as the colony has guaranteed its future stability, every taxpayer in the colony has an interest in tbe election of the gentlemen who, as representing the shareholders, are to exercise a potential voice in the future management of the Bank. In that management the Stato will be represented by the President .to be appointed by the Governor-in-Counoil, and tho shareholders by the five Directors, the Government exercising further control and supervision through the Anditor, who is to be of its selection and appointment. Whatever the controlling power ot the Government through President and Auditor may be, tho importance of having trustworthy and competent gentlemen in the position of Directors can scarcely bo overestimated. The new Board will have great responsibilities cast upon it. For many years the management of the Bank of New Zealand vested in Anckland, and had the management during those years been prudent and proper, the Bank Bhould, from the the opportunities it enjoyed, have become the Btrongcbt financial institution in Australasia. But unfortunately the managemont was neither prudent nor proper. Wo use mild terms in describing it as oxtravapan t and reckleßS. The result was that the Bank became involved in terrible difficulties, and narrowly escaped complete ruin. English financiers came to its rescue, and as the condition of their assistance insisted that the management should be transferred to London. We commented at the time on the doubtful wisdom of removing the management to the other end of the world, and vesting it in the hands of gentlemen who, whatever their commercial standing, were necessarily ignorant of local affairs in the colony, where the Bank's main business was to be done. The idea evidently was that, Auckland having proved untrustworthy, no colonial Board was to be trusted. 'J he experiment of London management failed to restore the Bank to a sound position, and tho colony haying been appealed to for it's guarantee, this haß been given on the condition that the management is located in Wellington, under Government supervision. The Wellington Directors will not have the uncontrolled power which the Auckland Directors abused, and which tbe London Directors failed to use successfully ; but they will have very great power, nevertheless, and the commercial repute of the city will depend very greatly on the prudence and ability with which they wield it. Tho interests and credit of three distinct parties will rest in their hands— first, those of the shareholders ; secondly, those of the State j and, thirdly, thoso of the mercantile community of Wellington. It is a great trust, and important issues depend upon the hands into whioh it passes and the manner they discharge it. If tho Directors to be elected here prove thoraselves competent and equal to the task, they will raise the commercial credit of the community, and 6how that Wellington is able to supply competent men to manage great finanoial undertakings. '1 he fact cannot fail to materially benefit the city, and to bring to it the headquarters of many other large and important institutions and undertakings. The oommeroial integrity and capacity of Wellington will, in fact, be on trial in the person of the gentlemen who are this month to bo elected directors of the Bank of New Zealand. Under these circumstances, we are glad to be able to express complete approval of the local names whioh Mr. John Murray, who in this matter, no doubt, represents tho majority of the shareholders of the Bank, has intimated will be nominated for the office. Messrs. Booth, Macaethy, Kennbdt, and the Hon. W. W. Johnston. form a quartet of full representative strength. They are men of independent means — a sine qud, non for the position — and they aro shrewd, hard-headed, and perfectly trustworthy men of business. They liave had experience in the management of large business affairs, and they are known as successful men — men whose names have been associated with many successful enterprises, to the success of which they have directly, and in a very large degree, contributed. They are men whom the shareholders can safely trust, [and whom the taxpayers of tho colony and the mercantile community of Wellington may without hesitation confide in. We doutft whether on the whole a better soleotion could possibly be made, and it certainly would not be easy to suggest any change whioh could be aocepted as an improvement. The inclusion of Mr. Glyn, the present London Chairman of the Bank, is proposed as merely a temporary proceeding. Itmay be convenient fora time to have a London director, and if bo, certainly no better man than Mr. Glyn could be chosen, but of coarse Mr. Glyn will not be able to take any part in most of the work which will devolve upon the new Board. Why it should be deemed inexpedient to permanently fill the fifth seat locally at present, we cannot say. Perhaps the reason may be the possible or probable amalgamation with another financial institution, the shareholders of whioh might naturally expect some representation on tho Board. Time will show. With the prospect of tho shareholders eleoting a really good Board, it now only remains for the Government to make wise and judicious appointments as President and Auditor, and tho Bank of New Zealand should start on its new career with every prospect of soon more than regaining its former prestige and position.