MARRLBOUROUGH.

Hawke's Bay Herald, Volume 13, Issue 1054, 4 June 1869, Page 3

MARRLBOUROUGH.

SEIZURE OF THE KIIOVJNCIAL FUNDS. We (Evening Post) have already announced the rather starlling and summary course adopted by the Bank of New Zealand, in seizing on the funds of the Province of Marlborough -which were in its hands, and now take fVoni the Marlborough Press the following . explanation of the transaction : — On the 19th March the Colonial Secretary addressed a circular to the various banks in the Colony, cautioning them against allowing the Provinces to make overdrafts, as they were illegal, and the Banks did it at their own risk, or rather, if we remember rightly tho tenor of the letter, at their own cost. The New Zealand Bank, however, had previously allowed Marlborough to overdraw its ac-; count to a considerable extent; and recently, upon a sum of nearly £2,500 being forwarded by the Colonial Paymaster: (through the Bank, we presume), the Bank took the course of diminishing this provincial overdraft by that sum. On this becoming known, the following resolution was introduced by the Superintendent, and unanimously agreed to by the Council : — " That the action of the Bank of New Zealand in placing to the credit of the provincial overdraft acctiunt the sum of £2,448 13s. lid, forwarded to the Province by the Colonial Paymaster, under the provisions of the Public Hevenues Act, 1867, and also the sum of £134 9s. being a portion of the advance voted to this Province by the General Assembly, was illegal, and in opposition to the Colonial Secretary's official letter of 191-h March, and the protests of the Provincial Executive; and that the subsequent action of the directors of the said .Bank, in reducing the limit of the provincial overdraft from £5,000 to £3,000, 15 a direct violation of a special agreement. And this Council hereby requests his Honor the Superintendent to communicate the circumstance to the Colonial Government, and represent that the province has never received the sums above named, which were forwarded by their instructions ; and to forward a copy of this resolution to the Colonial Secretary."