THE NEW BANK

Evening Post, Volume CVI, Issue 54, 12 September 1928, Page 10

THE NEW BANK

IS IT NECESSARY? DISCUSSION IN UPPER HOUSE After some discussion in tho Legislative Council yesterday, the London and New Zealand Bank, Limited, Bill was read the first time, and referred to a Committee of Selection, which will set up a Committee to take evidence. Concluding his speech, the commencnient of which was reported'in "Tho Post" yesterday,, the Leader .of tho Council (tho Right Hon. Sir Francis Bell) said he did not believe the Special Committee to which the Bill would bo referred would find that further facilities should bo given for banking. He had nothing to. say about tlie promoters of the proposed new bank, but he expressed surprise that, their names had been incorporated in the recital of the BUI. Unless very different evidence was produced'before'the Committee of tho Council than had been given, before the Committee of the House as to the need for the bank he would vote against the Bill. The Hon. Sir James Allen endorsed the observations of the Leader of the Council, and remarked upon the serious responsibility of the Council in the matter. He produced figures to show that in Nov,' Zealand, including branches of banks, there was a bank for cvexy 2851 people. The Commit-, tee would bo required to determine whether greater facilities wero needed. The paid-up capital of the banks of New Zealand—close on £25,000,000— was, ho believed, sufficient for this country. The policy in Great Britain was to amalgamate weak banking institutions and create strong ones so that financial difficulties might be withstood. A country like New. Zealand should make dead sure about the stability of its note issue, and that legal payment was undoubted. The Hon. E. Newman referred to the pessimistic speeches of Sir Francis Bell and Sir James Allen, and said it was not unreasonable that more financial institutions would be asked for to assist in tho development of tho country as its trade and population increased. It was not wise for too many private commercial firms and stock agencies to act as banks, making advances to settlers. He could not endorse the statement that the banks had not.done their duty by the country settlers. He,believed that if the bank helped in the development of the country it would find a good opening. There would be a splendid opening for it if it issued long-dated loans. Regret was expressed by the Hon. G. J. Garland that no provision was made in the Bill for depositors to be entitled to draw a percentage of their daily credit balance. If it could be shown that the new bank was necessary he would support the Bill. The Hon. Sir William Hall-Jones said the first thing they must consider was the welfare of New Zealand. Every safeguard should be provided to ensure that the business of tho bank was conducted on a sound basis. Replying to the discussion, tho Hon. "V. H. Reed said ho desired the Special Committee to inquire into the Bill and the proposed operations of tho bank very fully The Bill had been fully considered by the House of Representatives, which had definitely come to the conclusion that further banking facilities were necessary. In recent years the trend of 'money had been to the cities, and the creation of a new bank would give the opportunity for the distribution of at least another million of money. _^____^______