Evening Post. SATURDAY, SEPTEMBER 15, 1894. THE BANKING PROPOSALS.

Evening Post, Volume XLVIII, Issue 66, 15 September 1894, Page 2

Evening Post. SATURDAY, SEPTEMBER 15, 1894. THE BANKING PROPOSALS.

The firßt feeling on tbe part of the critical reader of the scheme propounded by Mr. Murray and Mr. Murray and the Hon. George M'Lean for the amalgamation of the Colonial Bank aud tbe Bank of New Zealand, must be one of admiration of the masterly grasp which these gentlemen show of all the details of a very iiitricate subject. Nothing seems to have been overlooked, and tbe provision proposed lo be made in regard to the most delicate and difficult details is of a, very complete character. Looking at the scheme as a whole, it appears to fully comply with the conditions which wo recently declared should distinguish suoh a proposal, and which were, we believed, possible If carried out on tho lines laid down by Meßsrs. Mckbay and M'Lean, tho union of interests will prove beneficial to tho aharoholders iv each Bank and advantageous to tho colony. That it will infliot a hardship upon a number of Bank employes is to be regretted, but careful provision ia made to reduce this to a minimum and to equalise the pressuro as much as possible between the two staffs. The amalgamation proposals present three salient features. Tho first and most important, perhaps, is the complcto severance of the Estates Company (Globo Assets) from the Bank of Now Zealand, round whose neck it now hangs liko a millstone. As the Bank of New Zealand is now actually respoiisiblefor the Estates Company, and the colony guarantees the Bank, it is clear that iv reality the ultimate responsibility for the listates Company must rest with tho colony. What tho amalgamation schemo proposes is that the connection between tho bank and tho Estates Company should be severed, that the latter shonld be placed under separate control, and that against its realisation tbo colony should hold collate] al security to the extent of between two and three millions, tho united Bank also paying a residua of profits towards the liquidation of the Company. During tho next ten years this balance of profits should, it i£> estimated, amount to half a million . At present tho Estates Company pays 5} per cent, on debentures for a million and a half. This is a heavy drag, and it is pro- ! posed to pay these debentures off, without, however, any further loan being raised, or the liability of the -colony on this acconnt being increased. Tho Estates Company is not only a drag upon tho Bank of New Zealand, but at present also upon the colony, and a potent cause of the existing depression. If it can bo placed in a position to work out its own realisation on lines independent of tbe Bank, and witbput involving further risk to tbo colony, a great Rood will bo effected. Iho Bank will bo given new life, aud enabled to begin v, new career frou from ihc Estates f 'ompuuy. . But an tbo Bank now stands it ia nut birong enough to effect tho de»ired -e\ciance. It needs new blood, new capital, and the I'i'oiiglli which ■will come to it from co - opcratien with another Bank. '1 be only alternative to gaining support of this kind must be additional direct assistance by way of guarantee from the colony — asbistance which for obvious reasons it is undesirable should now bo sought for. Tho first point in the now scheme— the completo separation to be effected between the Bank and tho Company— is one which must stronftty commend itself to the approval of everyone who realises the presont financial position and tho evils and dangers resulting from tho connection. The pecond prominent feature ot the scheme is what the countrywomen of the high contracting parties to the proposals would term the complete " reddingup " of the affairs of the respective Banks. The domestic affairs of each arc to be subjected to a rigid scrutiny by tho other, and only tho bubinoss which staucU that scrutiny ia to bo carried on fo the joint venture. Each proprietary is to bear tho responsibility of any bad business which it may have on its books. The now amalgamated Bank is to have no '" dead horse " to work off on account of either of its constituent parts. Tho Bank of New Zealand is to set aside £400,000 to meet bad and doubtful liabilii ies on its part, and. the Colonial Bank is to sat aside the whole of its roserve fund and accumulated profits for the same purpose, and if necessary tho reserve liability of its shareholders, amounting to £1,600,000, is to be drawn upon to make good any deficiency. The nowly-uonstituted Bank will therefore commence with the good business which two Banks have accumulated dnring the past, and entirely free from any of the bad business into which cither has been led. The new Bank could scarcely start under moro favourable conditions. The third leading feature of the amalgamation is the proposed allocation of profits, which is a very prudent aud judioious one. After paying 4 per cent, ou tho preference stock guaranteed by tbo colony and a dividend of 6 per cent, on paid-up capital, £20,000 a year is to bo placed to a now res»rvo fund, and then any balance is to bo applied to the liquidation of tho K states Company. On the whole, this woll-thonght-ont scheme must benefit everyone, if it is carried out. To the shareholders of the Bank of New Zealand it will afford the inestimable benefit of relief from tho pressure of the Assets Company, and it will open to them the prospect of a fair dividend on their capital, as the product of the operations of a sound and strong Bank. To the shareholders in tbe Colonial Bank it offers participation on fair torms in the business of a great national bank instead of bearing the strain of carrying on a comparatively weak aud struggling one. To the colony it offers some prospect of finality in regard to tho liability it has undertaken as the guarantor of the existing Bank of New Zealand, and, indirectly, of the Estates Company ; and to tho general and commercial public the great advantage will be socured oi'havingestablished a thoroughly strong and sound locally-managed B-ink, mainly owned in the colony, while all sections of the community will benefit from tho clearing up of all the accumulated bad business of the two Banks during their past careers. This will put business generally on a soundor basis than it has occupied in this colony for many years past. The proposed amalgamation will really lessen the banking risks the colony has undertaken, and will incroase the collateral security it holds against those risks.

If Mr. Seddon is still desirous of interfering in foreign affairs, we can suggest to bitn a subject on which an expression of the feeling of tbo New Zealand Parliament would be much moro legitimate than in any of the cases in which ho has interfered heretofore with matters outside tho colony. It has been frequently pointed out in these columns that tbe nggrossion of the French in Madagascar, and the evident intention of Franco to establish a strong military and naval station in that island, if permitted to do so, seriously menaces the interests of Australasiu. From Madagascar one of tho sea routes of Australasian commerce could be most effectively commanded, and Madagascar would also form a convenient base for naval operations directed n gainst these colonies. Tbo cable news of the last few days points unmistakably to the advanoe of French aggression in tho island. A special Commission, supported by a naval force, has been sent thero by France, an ultimatum to tho Queen of Madagascar is talked of, the cost of a campaign estimated, and tbe annexation of the island is openly and boldly advocated by the French press in order to establish thero a now Australia — and an arsenal. Suoh annexation, or indeed the flyer-ruling influence of France in the •country, is opposed to Imperial interests, and especially to the intoreßts of New Zealand and Australia. We have no doubt that the Imperial Government is fully aware of what is going on, and quite alive to its bearing, but at the same time it would not bo out of place for the several colonial Legislatures to cxpres3 their opinions on the point, and to remind tho Imporial authorities that their interests aro involved in the proceedings of Franoo in tliis matter. Mr. Seddon has here a good opportnjiity for giving a load to tbe other colonies. Our reports of Parliament and the City Council meeting, and the vital statistics for August, appear on the fourth page. The Governor did not leave for Auckland by the Takapuna yeeterday afternoon, having received a telegram that Lady Glasgow was starting for Wellington by the Hinemoa. Sir Julius Yogel has contributed to tho United Service Magazine an article on " The Naval Defence of the British Empire," which is very highly spoken of in literary and political circles in London. The receipts of the City Council during tbo month of August wero .£13,503 12s 10J. During tho samo period the expenditure ; amounted to £14,084 10s 3d. The rates and rents outstanding on the 31st ult. amounted to £12,763 Is Id and £1381 19s 4d" respectively. Tho amount to the credit of the Drainage Loan Account on the same date was £123,452 18s. A falso alarm of fire was given hist night. The annual roport of the Union Bank of Australia (Limited) is orowded out of to-day's i3sue, but will appear on Monday. The many friends of Mr. W. C. FitzGerald will be pleased to know that his health has been much improved by his trip to Australia. He is returning by the Wakatipn, which arrived at the Bluff yesterday. Mr. W. M Hannay arrived in town last night, and will at onoe take np his new duties as Secretary of the WelHngton-Mana-watn Railway Company. Another meeting of the representatives of fire insurance companies in Wellington was held tbia morning, Mr. F. Allen in the chair, when further consideration was given to the Foreign Insurance Companies Deposits Bill. A dooision will be come to on Monday. It is understood that Capt. Lindsay, late chief officer of the Coptic, is in command of the lonic, now on her way to the colony, and that Capt. Kidley, of the lonic, has succeeded Capt. Jennings on the Gothic, tho latter having retired from active service. The Matron of the Convalescent Home acknowledges receipt of counterpanes, clothing, and pillow slips from the Johnsonville Dorcas Society, and to thank Messrs. Sargood and Son for their contribution of calico As a party consisting of Mr. A. Schofield, his brother, and two sisters, was driving into town in a buggy yesterday afternoon, the horse bolted on Karori-road and ran into a tolegraph post, smashing the vehicle and fatally injuring the horse. The Eev. T. H. Sprott lectnred last night in the Church-room, Wadestown, in aid of the Sohoolhonse Building Fund, the subject being " Some Marriage Customs."

It is the intention of Counoilloi- Tatum to ir.ove at the next meeting of the City Council, "'lliatall paperß, plans, and docum<nta that in auy way may have connection with tho erection of the Public Library bo laid on the table." Mr. Adam Johnston, son of the Hon. C. J. Johnstr.n. has passed the final examination on ths Britannia for the Koyal Navy, aud is now awaiting orders to join his first ship. It is expected that he will be apnointed to the Howe. Only one ca=e was before the Stipendiary Magistrate to day James Burk was summoned to 6how cause why he should not contribute towards tho support of his son in St Mary's Industrial School, Nelson. The cose was adjourned to Tuesday. Mrs. Elizabeth Baker, of Mitchelltown, writes to ns expressing her gratitude to all those who have assisted her. Personal acknowledgments can only appear in our columns as advertisements, but it will be seen that Mrs. Baker is not ungrateful for tho assistance rendered. An examination of Emma Harriet Maule, storekeeper, who is bankrupt, was held by the Official Assignee, in the presence of sovcral creditors, yesterday afternoon. Mr. Wilford appeared on behalf of the debtor. Tho Assignee said that the debtor's affairs were in a moat unsatisfactory state. Money appeared to have been collected on her behalf, and tho books did not show what her takings had been lately. Debtor denied having authorised anyone to collect her accounts, and said she thought some of her papers and a missing book might bo with the furniture, which had been eoized by her landlord for rent. She promised to try and account for a sum of money she had received rocently. The meeting was adjourned sine die, the Assignee nndoitaking to examine the person who it was said had oolleoted an account owing the bankrupt, and call the creditors together again if nocessary. Mr. George Wilson, chief officer of the B.s. Taupo, who has been studying at the Trinity Houee Navigation and Steam Kchools, Wellington, yesterday passed his examination for a certificate of competency as master in the mercantile marine ThU ia the 530 th student under Captain Yon Scboen to obtain his certificate. Captain Todd, of the Brunner, is ill in Weatport. Mr. Ramsay, chief officer, haß charge of the vessel. Mr. Murrell, local manager for Hnddart, Parker & Co., received a cable message from Sydney this afternoon stating that it has been definitely decided that the s.s. Tasmania shall be placed in dock at Syney next week. The Elingamite will take her place. The weekly session of St. John's Lodge, 1.0. G.T., was held last evening. Two essays by Bros. Jones and Perry on tho question " Shonld Women have a Seat in Parliament f" were road, the former being in the negative and the latter in tbe affirmative. A vote resulted against the proposition. A concert to extinguish the debt ou the piano was hold la«t evening in the Vogeltown Schoolroom, which waß crowded. Mr. F. Jennings, Chairman of the School Committee, occupied the chair. A long programme of vocal and instrumental items was gone through, the contributors being —Misses Burge and Smith, Messrs. Henderson. Arcus, Greenwood, Anstin, Turubull, Philpott, Drake, Smith, and Silk A dance followed, Mr. J. O'Brien being M.C. Mr. King played the accompaniments, and also tho dance muEic. Miss Browno, head teacher, had charge of the reireshments. The Petone Fire Brigade held its annual social gathering last evening. About 40 persons attended, aud Captain- Austin presided. Invitations had been sent to a numbor of prominent residents and municipal officials, and Captain Austin Bpoke in severe terms ot tho discourtesy in ignoring them. To-day Cuba-street is further improved by the opening of a fine new store by Meßsrß. E. B. Crespin & Co. It is to be conducted on the co-operative principle), under which every customer will bo presented with a ticket indicating the amount of purchases, and at the end of each quarter will receive a dividend from the profits of the business, the first dividend being payable on the 20th December. Tho business which the firm has opened is that of a general grocery and boot emporium, and tho premises, which are situated a few doors above Te Aro House, have just beon specially altered to snit requirements. Two show-windows of the latest pattern form the front, and the entranco has been neatly tiled. Tho interior consists of the grocery department on one side and the boot department and showroom on tho other, while above the shop is tho butk-storo and a department specially devoted to tho important and delicato process of tea-mixing- and tasting and tho preparation of aromatio coffeo. Tho building is lighted throughout with electricity, and some attontion has been paid, in making the alterations, to hygienic requirements and tbo comfort of the employes. A new brick warehouse is about to be built at the back of the presont premises. A meeting ol tho Citizons' Inctituto will bo hold on Monday evening next, in Room No. 11, Exchange Buildings. Tho discussion on " Carlyle and Ruskin on Political Economy" will be re-opened by Mr. J. Gifford, M.A. The meeting will be open to the public. Dr. Tenro will commence a courso of lectures on " Homo Nursing and Hygiene," in connection with tho St. John Ambulance Association, in the Girls' Friendly Society Lodge next Tuesday evening. It ia explained that tho priza-monoys for which the Fetone Kifle Club lately made a claim upon the Greytown Rifle Club had provioußly been paid in a lnmp sum with other moneys due to the Petone Club, and not being specified had been entered in tho books as moneys won by private members. A complimentary benefit is being tendered at the Criterion Theatre this evening to those clever little entertainers Bubbles and Lar, who have boon performing there lately. Tho "babies" themselves will contribute largely to tho programme, a synopsis of which appears elsewhere. They should be rewarded with a bumper house. A special feature of the concert of the Newbury-Spada Company afc the Theatre Royal to-night is that the price of admission has been made low and uniform to all parts. To-morrow evening the company will make its final appearance in Wellington, at tho Opera House', in a grand sacred concert. The full programmes appear in our advertising columns. The programme of the Caledonian Society's annual concert to be held in the Opera House on Monday evening next appears in our advertising columns. The choruses have been in rehearsal for some weeks, and promiso to be very effective. A plain and fancy dress " social" iv connection with the Gothic Quadrille Assembly will bo held on Monday evoning next. Tho People's Popular Sixpenny Conoerts are to be resumed at the Skating Rink on Wednesday, the 26th met., nnder the management of Mr. M. J. Lloyd, when Mr. Milford Haven, a Melbourue tenor, of whom report Bpeaks favourably, will make his first appearance in Wellington. An entertainment in phronology and phy. siognomy by Messrs. Crewes and Whooler is to take place in the Ballanco Hall on Monday evening. Members of tho Musical Festival chorus aro romindod that tho next rehearsal will take plaoe at tho Exchange Hall on Monday evening. J. H. Betlumc & Co. nnuounce iv our advertising columns that they will sell by public auction at their rooms, Featherston-street, on "Wedne&clay next, lit 2 o'clock, by order of tho Official Assignee in the estate of Mr. H. Naphtali, a quantity of valuable o.p. ware, and in the estato of Mr. G. Percy a handsome " Mignou " piano; also, by instructions from Mr. Kobert Morton, his selected library of 500 volumes choice books. The New Zealand Observer and Freo Lance has now a branch in Wellington at No. 1, Lambtonquay, and special attention is being given in the reading matter aud illustrations to Wellington events. This week's issue contains, amongst other pictorial matter, "A Wellington Land Engagement, in which H.M.B. Wallaroo Boys took part," a cartoon on the bonk amalgamation, &c. Ladies aro generally interested In novelties, and like neat artistic patterns in dress stuffs, &c. To such, an inspection of Veitch & Allan's new goods, per s.s. Aorangi, will well repay a visit. The advertisement relating to these goods appears in this issue. We draw the attention of those oa the look out for high-class furniture to the auction sale of Mr. L. L. Harris' valnable effects, which takes place at tbe Welhngton-terraco on Wednesday, 26th September. As Mr. Harris intends relinquishing housekeeping, he has instructed George Thomaß & Co. to sell every line without tho slightest roserve. W. M. Lawson & Co. will sell by auction in their rooms, 20, Cuba-street, on Monday, at 2.30 p.m., a consignment of English furniture in the latest West Eud London styles. A gaslight display will be held this evening. J. Meagher advertises finest table potatoes, groin, chaff, &c, for sale. Thompson Bros. & Co. notify that they are now landing a cargo of Newcastle coal ex Frank Guy. The mine from which this coal comes has the reputation of being the best in Newcastle. New goods and various novelties are now opened by Pringle"s Lanibton-quny. They have been personally chosen by Mr. T. Priugle in London. Sir E. Stout delivers liis lecture on "Liberalism — True and False," to-night, at tho Becbabite Hall, Manners-street. The order of services at St. Peter's Church for to-morrow is advertised. At St. Andrew's Presbyterian Church, Terrace, to-morrow, the services ivill bo conducted by tho Eer. C. S. Ogg, M.A. Home Mission services will be held iv nil Wesleyan Churches of the city to-morrow, and special collections made in aid of the Home Mission Fund. Tho annual meetings will be held next week, full particulars of which will be found in Monday's issue. At the Terrace Congregational Church, tomorrow, the services will be conducted by the Eev. J. B. Glasson. At the Courtenay-place Congregational Church, to-morrow, the services will be conducted by the Hey. W. Sbiror in the morning, and iv the evening bytheßer.B.T.HaUowes. The services in the Primitive Methodist Church, Webb-street, to-morrow, will be conducted by the Eevs. J. Guy and S. Baraett. The services at the other Primitive Methodist churches are advertised. At the Vivian-street Baptist Church, to-morrow, the services will be conducted by the Rev. C. DaUaston. At the Church of Christ, Dixon-street, tomorrow evening, Mr. A. F. Turner will preach. Lectures in connection with the Forward Movement will be delivered at the Hechabite Hall, Manners-street, to-morrow. The subjects ore advertised. The United Christian Mission will hold services to-morrow and during the week as advertised. Mr. Hinman and Mr. Frizzelle will preach in the Gospel Hall, Herbert-street, to-morrow evening. A Gospel service will be held in the Hunterstreet Mission Hall, to-morrow evening. United open prayer meeting every Friday evening. A meeting of the Sociological Association will be held in the BaUance Hall, Manners-street, tomorrow evenine. |