The Hastings Standard Published Daily. WEDNESDAY, JULY 1, 1896. A POSSIBLE DANGER.

Hastings Standard, Issue 56, 1 July 1896, Page 2

The Hastings Standard Published Daily.

WEDNESDAY, JULY 1, 1896. A POSSIBLE DANGER.

For the cause that lacks assistance, For the wrongs that need resistance, For the future in the distance, And the good that we can do.

Theke can bo no two opinions that the welfare of the Bank of New Zealand is tho \ndfaro of the colony. : The taxpayers of tho colony are interested in that institution to the tune of five millions and a quarter, and in the interests of the taxpayers every c tre must bo taken not only that the Bank is well -managed by its officials, but also that no Act of the Legislature or of the Government will be of such a character as will jeopardise the stability of the institution. The Bank of New Zealand is, as the Premier stated in the House, a department of the State, and as such it, is necessary to safeguard it. The proposal involved in the banking question which i Parliament is to inquire into lias with- ( in it an element of danger. If the accounts of the customers of the Bank are to be subject to examination and to be made public, a very severe blow will be given to the institution. Is it to be supposed that those whose ac- j counts are worth having and who con- j sequently can have no difficulty in finding accommodation elsewhere will remain clients of the Bank of Zealand if their affairs are to be made public in any manner whatever ? In seeking to discover the circumstances that led j up to the bonking legislation of 1894, and the condition of the Bank prior to that date, there is considerable danger. , It will be impossible to ascertain the condition of the bank at any time, without raking over the accounts of customers, and once this is done confidence in the bank will vanish. Let the Bank of New Zealand but lose the confidence of the commercial classes, and it shut up shop. JSven supposing that ouyl the paafc

accounts of the bank will be made public, and that the affairs of those now doing business with the bank will be kept secret, what assurance is there that, say five years hence, there will not be a similar parliamentary inquiry as proposed now. The traders of to-day would then have their affairs held up to the public gaze, and 110 one will voluntarily place himself in that position. An inquiry is imperative, and no matter how careful Parliament may be in meeting the demands of the people for an inquiry, it is impossible for the matter to receive proper consideration and to be fairly dealt with without a certain amount of publicity of private affairs, from which the Bank of New Zealand is bound to suffer. Judging by the temper of the House and its insistence for a full inquiry, we fancy we see danger ahead for the Bank of New Zealand, and we are certain that unless extreme care is taken the present » Parliament will, in its dying session, undo the work of the past two sessions. The banking legislation of 1894 and 189r> has been to prop up the Bank of New Zealand and to give to it stability, but the legislation of 189G will, unless hedged round with many safeguards, throw the bank into liquidation, an event which will mean between ten and twelve millions sterling to the colony. The possible effect of a wide searching for irrelevant matter was pointed out to the House, and the word liquidation escaped the lips of more than one speaker during the banking debate. It is therefore possible that the crisis which was averted by Parliament in 1891 and again in 1895, may overtake us this year through the interference of Parliament. The composition of the Committee, with the exception of Mr G. Hutchison is entirely a Government one, and consequently the result of its deliberations will bo biased and worthless. The Royal Commission with a Supreme Court Judge as Chairman, favored by Captain Russell, would certainly have been an improvement 011 the proposed Parliamentary Committee, but in our opinion nothing but the judgment of an independent tribunal will be satisfactory to the colony.