THE NEW BANK.

Hawera Star, Volume XLVII, 25 July 1928, Page 7

THE NEW BANK.

BILL BEFORE THE HOUSE,

D rSOUSftI ON BY MEMBIipS. (By Tekfgrapli—n*±s» Association.! WELLINGTON, July 24. In the House of Representatives this afternoon the second reading of the London and New Zealand Bank Limited Bill wlas moved by Mr J. G. Eliott (Olroua), who offered no argument in favour of the measure. The Leader of the Opposition (Mr H. EL Holland) asked what attitude the Government was going to adopt towards' the Bill. If the Government was going to- allow the Bill to pass or was going to facilitate its passage the situation would be vastly different from what it would be if the Government "was going to take up an antagonistic attitude. It the Government would sav it was- not going t 0 appose- the Bill, then members who had some interest, in the matter would know what course to take.. .

The Hon. W. Do wipe Stewart, Minister ot Finance, said the Bill was a private one and was not sponsored by the -Government. His own view was that the correct- time to discuss the merits of tine -Bill was on the report of the select committee. -He had intimated to Mr Eliott that if a responsible body of citizens wished to start a new bank and incorporated in the Bill the ordinary legislative provisions for tire protection of the public, as well us satisfying the committee - that the capital and banking facilities- were reasonable, it was not the- object of the Government to obstruct the Bill in any way. It was for the committee to examine the Bill, and if those citizens wishing to start a- new bank satisfied the House that their proposal was sound and- that proper safeguards were incorporated in the Bill, then that concluded the matter as far as the speaker was concerned. , . Mir W. A. Veitch (Wanganui) said he had looked up the records of earlier hanking legislation and he was not sure the (circumstances were ais the Minister of Finance had said. He was concerned mainly with what Hie effect would be if the Bill .became law. It was on an' entirely different footing from-previous banking 'LeigLslaition. if the Bill passed in its present form. According to its wording the Government would have no s>av in the matter. The Colonial Bank Bill of 1874 was entirely different from the present one, for the capital had already been subscribed- and the bank wa-s alreadv established. Parliament knew who‘the people were who were behind the measure, but there was no such information dn -regard to the present venture. The IT oils© had already had an assurance dn regard to the bank and that the general public interest was safeguarded, but people would like to know who- were behind the new bank and what guarantee there was in regard to its finance. Mr Bldot-t: “Do you oppose the legislation?” Mr Veitch: “I am just expressing my opinion about dit. I am disappointed that the hon. -member lias not given t ie House this information.” If they were t-o break the banking monopoly the ban kin <x kli-c ©o tin try k ould I.* £ widened. He wiais. not convinced that the Bill safeguairded public interests, and he suggested that it be withdrawn until further/ information had been o-iiven. If the Bill were passed an exclusive right would be conferred for some unknown person to start a new bank wild eh would be worth a great deal of money. The promoters shou.d, before asking for legislation to be passed satisfy the House that the money had-been‘.subscribed. One fresh bank would not meet the banking needs o, the country. He had read m the Press that the bank would be independent o other banks, but that was not provided the Bill. If it became an establnslhed fact lie predicted that -it could not remain independent ol the- other banks, and he could not see any justification for the OBdill. ....... .. , r Mr IV- Glenn (Riangitoke-i) said Mi Veitch was unnece-ssa-rilv nervous abort the Rill and that -without giving its promoters a- chance to explain their position before a- committee.. The Minister of Finance was not going to permit any wild cat -scheme to come into this country- What the speaker was anxious to -see wiais am extra Li.UUMJOU capital brought into New Zealand which can be profitably invested. J-lie bulk of it would be new capital He did not care what Government it was, but he did want to know what view the Minister took of it. -beenuse he did want to see the inflow of mew capital into the country. - ~ The Rill! was then read a- second time and referred to a committee of selection.