The Banking Bill.

Hastings Standard, Issue 147, 16 October 1896, Page 3

The Banking Bill.

—■ IN THE COUNCIL

THIRD READING AGREED TO

1»Y TKLKfiRAPH

(Fi»i» our Sfoiul ' >t(.,

Wellington, This day. The second reading of the Hank of Zealand and the Ranking Act Rill was moved by the Tmhister of Education in the Legislative Council yesterday atVrnoon. After explaining that the Rill was the result of the reports of both Ranking Committees, he stated that an alteration in the present constitution of the Board of Directors was necessary as at present it was too local to deal with affairs of national interest. He intimated that he would be glad if some member would move for the reinstatement in the Rill of the clause dealing with liquidation struck out by the House. The Hon Mr Rowen considered the Banking Committees had been a mistake and contended that the Supreme Court should be left to deal with any wrongs which may have been done. The enquiries cf both Committees had left things very much as they were previously, and the Rill was the outcome of a feeble and delusive investigation. Interference with the present directorate was in his opinion an evil proposal as the evidence proved that the present directorate had done good work. The colony should be contented to endeavor to get rid of the bank as soon as possible and hand it back to the sole control of shareholders. He concluded by moving that the Bill be read a second time three months hence. The Hon Mr Kelly considered the proposal to dispense with the present President a very unfair one. The Hon. Dr. (trace thought that Parliament would rue the day if it passed the present measure, as if it became law it would not tend to the colony Wing able to recover the money it had sunk in the institution. The Hon. Mr Rigg generally supported the Rill. At the evening sitting, banking occupied the Council until after mid""ft. Hon. Mr Ronar hoped that political control would not be allowed to creep in too largely. When in Committee be would move to have the Bill considerably amended. The Hon. Mr Bolt looked forward to the time when the Rank would I>e free from political control. In his opinion Mr Watson was entitled to £SOOO compensation. The Hon. G. MLean thought that the clause relating to the "R " list should be reinstated. There was not a political man who held an account under that list and he thought they had no occasion to fear on that score. JE2SO was in his opinion quite sufficient remuneration for the directors. The banking difficulties were not yet over, and unless more prosperous times came there would have to bo a good deal of writing down done by the banks of the colony. The second reading was eventually carried by 18 to 6. The measure was then considered in Committee. An ineffectual attempt was made to reduce the number of directors to six. The clause bringing directors of the Bank of New Zealand under the provisions of the Disqualification Act was struck out on the motion of the Hon Mr Kelly. It was resolved that a new clause be inserted that no member of cither House should be appointed by the Governor- in-Council a director of the Bank of New Zealand while occupying a seat in the Legislature. After further discussion progress was reported, leave being given to sit

again. The Council resumed consideration | of the Banking Bill in Committee at eleven this morning. Clause 9 was amended so that in the event of the President refusing to accept one year's salary as compensation for the" loss of office he may bring ail action against the Bank for damages for a breach of contract. When the question adding a new clause dealing with liquidation without the intervention of the Supreme Court came before the Chamber, the Minister suggested that their attention should be restricted to'the •• B " list otherwise a conflict would arise with the House of Representatives. By 13 to 6, however, the Council passed a new clause, submitted by the Hon Mr Kelly giving the Colonial Bank liquidators the same power as were possessed by the directors of the Colonial Bank to deal with all accounts (save those in the " C " List) without the intervention of the Supreme Court. On the Minister's motion a further clause was added, giving power to the liquidators of the Colonial Bank to deal with the directors of the Bank of New Zealand in making a bargain for the whole of the accounts in the " B list, without the necessity of applying to the Supreme Court for confirmation, bat that the unanimous consent of the Bank of New Zealand directors must be obtained. That was rejected by the House by a majority of seven. The Bill was then reported, and after the Hon Dr. Grace had exan opinion that under the scheme of reorganisation the Bank of New Zealand was entirely in the hands of the, Government, who would be solely responsible for it in future. The third reading was agreed to.