Evening Post. WEDNESDAY, AUGUST 14, 1895 THE BANK Of NEW ZEALAND.

Evening Post, Volume L, Issue 39, 14 August 1895, Page 2

Evening Post. WEDNESDAY, AUGUST 14, 1895

THE BANK Of NEW ZEALAND.

The Government has acted wisely in determining to sot np a Joint Committee to consider the position of the JJank of New Zealand and the Estates Company. Neither tho House nor the country wonld have stood any more surprise legislation on tlio subject of banking, and there are obviously insnper^blo objections to disonseing doKeato details openly in Parliament. In fact, in no other way tban through tho invootigations of a Committco would it bo pot>sible to gain such information as to details as wonld justify tho Legislature in rendering any further assistance to the Bank. That such assistance will have to bo rendered there ia probably no room to doubt. Every man who wbb even moderately well informed on tbo subject mnst have known that the two million guarantee given last session would not of itself suffice to restore the Bank to a perfectly sound and prosperous condition. It was soon that further assistance would in duo timo have to be given. Wo pointed this out on the morning following tho remarkable passage of the Bank Guarantee Bill. The Buik itself might have done with the two millions if tho Kstatcs or Assets Company bad not hung round its neck liko a millbtone. The timo has now, it would seom, arrived when tho colony mnst intervene to relieve the Bank of this incubus. It is an unfortunate necessity for tho colony, but it is the natural Boquence to the liability far too thoughtlessly assumed by passing tho Guarantee Act last year. That Act bound the colony to support the Bank of New Zealand through evil report or good roport, to the full measure of the public credit. The colony was thus bound to the Bank as indissolubly as man to wife. Even the sacrifice of the two millions then guaranteed wonld not now relieve the oolony of its moral obligations. It has to see the Bank through any difficulties it may experience. In ardor to be able to do this in the most effootnal manner, however, it is necessary that tho fullest information should be obtained as to the Bank's real position, and the nature and value of tho r states Company's assets. Tho Committee now proposed to be set np will bo able to obtain this information, and we trust it will do its work comprohonsively, so as to be ablo to present an exhaustive report. It is well that the colony should know the ■worat at once. Tho order of reference is sufficiently wide to enable the Committee to do its work thoroughly, and to consider, amongst other things, the question of amalgamation between tho Bank of New Zealand and the Colonial Bank — a proceeding of which wo ventured last session to express our decided approval. We have seen no reason to ohange our opinions upon this point. The Committee, however, should be able to obtain information regarding it which would afford an absolutely reliable guide to the House in dealing with any proposal to sanotion amalgamation. The proposed Joint Committee seems fairly enough constituted. The matter is not a Party one, and should not bo truated on Party lines. The desire of aU Parties must be to do what is best for

ttio rilonv in fiOlilliij? it- cmuenlu.t rashly gi.en uiidiMl ikni" to nro tio Kml: thrnuph all it« tiot'.lile^ llio (/ominitti'O '•liould lip aliletonrivi-o thpl.PsjisliitiiTo authorititivply ns to lio»- tlm ran beaf 1)0 (lone, nml «lion snrli ailvico is rendered, it arrivpfl at unanimously, there should bo no bngglinjr in either Chiunborn'iiout (jiving legislative ofteottotho rocoinmond,i.ti(>i\9 oho colony haa simply to make tho host of a bad job.