The Banking Inquiry.

Hastings Standard, Issue 124, 18 September 1896, Page 2

The Banking Inquiry.

THE COUNCIL COMMITTEE'S REPORT. [By Telegraph.] (From our Special Correspondent.) Wellington, This day. The Council Committee on banking will report this afternoon. Though the Committee positively refuses to allow press representatives to have access to the report before its presentation to the Council with a view of making a precis, I believe their recommendations will be found to be on the lines already indicated. As to the future of the Bank, the Committee will recommend two additional directors representing the colony, one to be selected by either branch of the Legislature. The Committee by a majority adhere to the opinion that the late Treasurer should have resigned on discovering his financial position shortly after his return from London last year. Later. The Banking report, presented to the Council this afternoon, bears out the line already published in your columns. On the subject of the oats transaction and Mr Ward's position the report —which is unanimous,says:—"During the investigation made by your committee in respect to the agreement between the banks for the purchase of the Colonial Bank and the connection of the late Colonial Treasurer with that bank has necessarily occupied a good deal of attention. Evidence is that the late Colonial Treasurer and the Ward Farmers Association had done business with the Colonial Bank for a considerable time and that Mr Ward was the principal proprietor of the Ward Farmers Association. The business of the Ward Farmers Association was large, involving a turnover of half a million a year. In June, 1895, an Inspector of the Colonial Bank was sent to Invercargill to endeavor to reduce the overdraft of the Ward Farmers' Association and he obtained a draft in London for £BO,OOO, founded on a warranty for oats. Mr Ward, the late Colonial Treasurer, returned to the colony in July, 1895, and shortly afterwards became aware that his financial position was involved and also of the oats transaction, the short history of which is that Mr Fisher, manager of the Ward Farmers' Association, gave a draft for £BO,OOO on London supported by a warrant for 80,000 bags of oats, but the precise terms of the authority on which the draft was given was not communicated to Mr Fisher, and he stipulated that the draft should not b*e operated upon till Mr Ward's return to the colony. It must be remembered that this was done while Mr Ward was absent from the colony, and that as soon as he became acquainted with the facts he informed the Bank authorities. Your committee are of opinion that Mr Ward ought, when he became aware that his financial position was seriously involved, to have acquainted his colleagues in the Government of his financial position, and that he ought to have tendered his resignation to the office of Colonial Treasurer, and having in view the necessity that was then known to exist for negotiating for the purchase of the Colonial Bank and the passing of legislation to give effect to the same and the knowledge that those transactions and that legislation must necessarily affect them, it was, in our opinion, extremely unfortunate that Mr Ward should have continued to hold the office of Colonial Treasurer. Your Committee think it right, however, to state that they found no evidence to show that Mr Ward was associated with the negotiations for the purchase of the Colonial Bank.