The Banking Bill.

Hastings Standard, Issue 502, 15 December 1897, Page 3

The Banking Bill.

SECOND READING CARRIED. In the House on Tuesday, Mr Seddon, in moving the second reading of the Bank of New Zealand Banking Act Amendment Bill, said had there not been a necessity for all the measure : he would certainly not have introduced it, but he could not overlook the fact that the committee in IH9G recommended certain important alterations respecting the Bank of New Zealand which were he to overlook he would lay himself open to the gravest censure. He was convinced that there ought to be an end to banking legislation, because the constant irritation engendered by such legislation must necessarily be detrimental to financial i ihstitutions and shake to some extent i public confidence in them. The Bill was chiefly a machinery measure designed to put things in connection with the Bank of New Zealand in order. He pointed out the necessity for the appointment of local directors to represent the different parts of the colony in order that the wants of different districts should be intelligently dealt with. If the number of directors proposed (nine) was considered too large it could be altered in committee. Dealing with the proposal to abolish the office of president, he said that in 1896 it had been urged on the Government that there was a necessity for change in respect to the Board. He could only say so far as the conduct of the bank's business was concerned that as head of the Government he had no complaint to make against the president. Those who urged that the office should be abolished had done so, however, on grounds apart from the president's position in the bank. Mr Rolleston said it would be extremely mischievous if an acrimonious discussion took place or the past raked up in any undesirable way with respect to the banking legislation in the past. He considered the Premier's speech had been apologetic in tone, and was not that of one who believed in the necessity for the measure. The report and proceedings of the Banking Committee had been disappointing to the public at large, and the public would not have been dissappointed if the Government had taken no action to give effect to its recommendation. Mr R. M'Kenzie argued that the present bill should never have been brought before Pariimerit, and he moved that it be read a second time six months hence. Mr George Hutchison considered the bill a most necessary one, and the state | ' of affairs respecting the president was j sufficient to warrant its introduction, j Mr Millar said t!.< whole object of the bill was toabolish the presidentship, j but he contended that sufficient reason had not been given for the president's I dismissal. On these grounds be inI tended opposing the bill.

Mr Bollard asserted that if the Government wished to injure the bank the bill should be passed, as it would destroy all confidence in that institution. Mr Larnach questioned whether any good would be gained from the proposed changes in the bank's management. Mr Brown argued that the Bill if passed would make the Ministry of the day the real directors of the bank. Mr Hogg contende d that the Bill did not give the Ministry power to interfere with the directors of the bank. He considered it desirable that the bank should become a State bank. Mr Crowther hoped that it was not inevitable that the bank should become a State institution. Mr Moore intended supporting the second reading of the Bill, but considered it required considerable amendment. Mr O'Regan considered the Bill a very necessary one. Mr Montgomery dealt with the necessity for the removal of the president, and said he was not trusted by those Avho did business with the bank. The removal of the president, would do a great deal to disconnect politics from the management of the bank. Mr Buchanan considered that the appointment of nine directors would result in mischief to the institution, and he intended in committee to do his best to reduce the number. Mr R. Thompson said the House was perfectly sick of banking bills, but he would support the second reading of the present measure as he held that it was the duty of the House to get rid of the president. Mr Wilson contended that 110 reason had been given for the removal of the president, and objected to the increase of directors, and of the local boards. Mr Allen considered the Bill placed increased powers of patronage in the hands of the Government of the day. Mr Seddon, in reply, said the bill had been touched very gingerly by members. Under the present management there was no necessity to strengthen the bank or safeguard the colony. He denied that the Government had been responsible for the colony coming to the rescue of the bank, but despite all accusations made against the Government in the matter if similar circumstances arose he would do over again what had been done. The following is the division list 011 the second reading of the Banking Bill: Ayes, 42. Cadman MeGowan Carncrows Meredith Carroll Mills Carson Monk Duncan Montgomery Field Moore Flatman Morrison Gilfedder O'Meara Graham O'llegan Hall-Jones I'aiata Heke Pere Hogg Seddon Holland Smith Houston Stevens Huteheson -T. Steward Hutchison G. Symes Joyce Tanner Kaihu Thomson, li. La wry Thompson, T. Lethbridge Wilson Lewis Wright Xoes 20. Allen M'Guire Bollard Mackenzie, M.J.S. Brown M Kenzie, R. Buchanan M'Lean Crowther Massey Fraser Millar Guinness Pirani Hunter Richardson Kelly Thompson, J. W. Lang Larnach PAIRS. For Against Allen, E. G. Herries M Kenzie, J. Russell Fisher Sligo Stout Ward Wason Robertson