THE BANKING QUESTION.

Hastings Standard, Issue 63, 9 July 1896, Page 3

THE BANKING QUESTION.

DEBATE IN THE LEGISLATIVE COUNCIL. IMPORTANT SPEECH BY HON. J. D. ORMOND. TBy Telegraph] / From Sj"fial < 't>rr-:s.pont]t")it. / Wellington, This Day. Banking matters engaged the attention of the Council for some time yesterday afternoon. The Minister of Education moved to set iip a Committee to act with the Committee chosen by the House. He denied that it was the attitude of the Government which, had brought matters to a crisis, and said it was entirely at the Bank's solicitation that they did what they had done, and so saved the institu * n 1^94. So far as the dtbi - his proceeded the honors are mm ! \ with the Hon. Mr Ormond and th II">n. Mr M'Lean, the latter making an appeal 011 behalf of the Colonial Bank. The first speaker after the motion was submitted was the Hon. Mr Shrimski, who objected to the appointment of a Select Committee on the „ ground that it was 1 firco md a deL lusion, and he also objected to raking up dead men's bones i-ptc I'ly when the colony had lost uothuu by the bank np to 1894. The Hon. Mr Ormond complained that the order of reference as proposed would not bring out matters which it was desired to get, so that the Committee might have a chance of producing an intelligent report. He believed an tmwieldly committee would be unable to get at anything like the real state of affairs with such wide issues before them. As a member of the Banking Committee of 1895, he found that when Government entered on the legislation of 1894 they knew nothing, and that the three million guarantee was of no avail. The present bank directors were men of honor, and as for the colony he believed they were doing . their best for the iastitatkm. B« d®-

dared there was nothing referring to I them to inquire into. Speaking to i Resolution No. 2, dealing with the private affairs of the customers of the bank since 1888, which he proposed to strike out, Mr Onnond characterised it as a breach of those honorable understandings supposed to exist between the banks and their customers, and it was utterly indefensible and would be a discreditable proceeding to everyone taking part in it. Nothing would induce him to take part in so dishonorable a proceeding. (Hear, hear.) Apparently what was at the bottom of the resolution was to get at the past transactions of those who were deadand gone. Since the J. G. Ward Farmers' case was taken before the Supreme Court a wave of feeling htl-quul over the colony that this le 'i 1 itrn was connected with Mr Wards position, and the Premier to hide the real state of affairs was setting up a Committee in which his own party was overwhelmingly represented. After the Ward revelations the colony would insist on the fullest inquiry into the negotiations between the Colonial Bank, the Bank of New Zealand, and the Ministry, and also as to the purchase of the Colonial Bank. Referring to the late Colonial Treasurer's connection with the legislation of last session, he pointed out that in separate column of Schedule C appeared one item of 455,000, which was for the benefit of the gentlemen in charge of the Bill, and Parliament knew nothing of it. Moreover, there was a special clause put in the Bill by which this transaction could be got at. Nothing like this, Mr Ormond asserted, could be found in the annals of any country in the world. It was decided to take the paragraphs of the resolution m-rintim, and the Hons. Messrs Ormond, Pharazyn and Grace demanded a ballot on the firr-.t paragraph, the Speaker saying any three Councillors could do so. Speaking to the motion, the Hon. G. M'Leau said that nothing but misrepresentation of banking matters had been caused all over the colony on account of party politics. It was a great wrong that they should try to ruin a Government and ruin a man in his business merely for the sake of politics. As to buying the Colonial Bank's goodwill at 475,000, if lie had to go through it again and was offered 4200,000 for it he would not accept it. As to the t0.5,000 mentioned by the Hon. Mr Ormond, the chances of the Bank losing by the Ward Farmers' Association came as a surprise during the progress of negotiations, and like honorable men they informed the Bank of New Zealand of the position. It was not for the directors to smash the Association, and therefore 4".5:1.000 was placed to an account in a position in which they thought another bank would take it over. The Bank of New Zealand was allowed three months to say whether it would take it or reject it, though for all the other account* they had two years. This 455,000 left their capital intact, and had Mr Ward not been a politician it was probable the account would have been taken over by some other institution. The Bank of New Zealand had helped to assist the country, and now for the purpose of politics they were ruining Mr Ward, and not only him but a whole countryside of farmers. He had never known shareholders try to damage their position as had the shareholders of the Colonial Bank. The Hon. Mr Rigg was against the selection of the Committee by ballot, but I)r Grace, while supporting the selection of the Committee by ballot was certain whatever was the result of the inquiry the Premier would come out of it cleanhanded. In order to give time for consideration of the position of the Council if clause 2 were struck out, he moved that the debate be adjourned till the following afternoon, which was agreed to.