Parliamentary.

Hawke's Bay Herald, Volume XXIX, Issue 9735, 18 July 1894, Page 3

Parliamentary.

*y LEGISLATIVE COUNCIL. Tuesday, July 17. The Council met at 2 30 p.m. BILLS. The Married Women’s Property Bill passed through committed. Mr M'Gregor’s Legitimiaation Bill was read a second time and referred to the Statutes Revision Committee. Tbe Council then adjourned. HOUSE OF REPRESENTATIVES. Tuesday, July 17. The House met at 2.30 p.m. BANK OF NEW ZEALAND SHARE GUARANTEE BILL. Mr Ward moved tbe suspension of the Standing Orders to enable the Bank of New Zealand Share Guarantee Act Amendment Bill to be put through all ils stages at one sitting; Captain Russell asked why that extraordinary course should be adopted, as the position was quite different from a fortnight ago ?

Mr IVard said that but for his illness he would have asked the House to assent to this bill some days ago. The present hill was altogether different from those passed by the House earlier in the session. Its introduction was consequent upon an important communication received by the Government from the Agent-Generat, and it was necessary that no delay should take place in passing it. Captain Russell said the House had readily agreed to pars the two bank bills brought flown by the Government earlier in the session in order to meet a grave emergency, leaving the responsibility with the Government, but be contended that the Honse should now be informed of the reason tor this legislation, and the causes which led to the introduction of these bills. Ho he'd that tbe whole question should now ha sent to a select committee to report fully upon the matter. Mr Seddon said that all the present bill providi d for was a change from shares to stock. There was a great difference between issuing preferential shares lor a short period and issuing stock. The Government were informed that it would he a great advantage to go on rbe market as soon as possible, and that it would be also beneficial to Issue stock instead of shares. It was important that this hilt should be passed without delay in order that tbe highest amount obtainable in tbe market might he realised, as the stock, according to Press cablegrams, was to be issued on Wednesday. The Government had asked that the bank should clear the amount which had been guaranteed, and the issue of stock instead of shares would, they felt satisfied, clear that, amount. He declared that tbe Assets Company had not depleted the Bank of New Zealand. That company had paid interest on the debentures held. He quite concurred with Captain Russell that the appointment of the president ol tbe bank ought to be dear of politics, and when that responsibility was cast on the Government ho thought they would rise to it. Mr Mitchelbon strongly protested against bilis of this nature being rushed through the House at one sitting.

Dr. Newman said the House was entitled to know whether or not they had gut the bank in a sound position. The whole matter should be referred to a select committee.

Mr Duthie supported the views expressed b/ Captain Kus-ell. Mr Ward, in reply, said it was wellknown to the present and previous Governments that the Bank of New Zealand was not strong, and it had been a source ot great anxiety to Ministers. Captain Russell had stated that the Government were guaranteeing the shareholders, bat they were doing nothing of the kind. The lost bill provided that the shareholders, under certain conditions if found necessary, were to nr .vide £500.000, and unless d per cent were earned on two milions of money the shareholders were not to receive interest on the new shares. The present bill contained no new ' piiouple at all, but it was neces'Bry that: there should he no delay over an important measure of this nature.

The motion for the suspension of the standing orders was then pgrted to. Mr Ward moved the second reading of the Bank of New Zealand Share Guarantee Act Amendment Bill. Ha said there was m njaterial alteration in the present hill from that pas-ed by Parliament a few weeks ago. Since the passage of that bill the Government had been informed by the Agent-General that the shareholders of the hank were only entitled to hold 3000 shares, and that in consequence of this the amount ot capital required could not he raised in reasonable time unless the shares were put, on the market at a heavy discount. The Government replied to this that on no account could they agree to the capital being raised unless the hank received par, ond they asked the Agent-General to at«ertain

whether the bank authorities were prepared to take the responsibility at par. The Agent-General replied to the effect that it would he necessary to substitute stock for shares in order to do away with the provision that a limited number of shares be held by one person, in that case the bank authorities would ogren to the money being raised at par. The Government feit that the credit of the colony was attached to that, and tin y agreed to the proposal. The AgentGeneral farther pointed nut to the Government that the autumn holidays were approaching in England, and that unless prompt action was taken in raising the necessary capital considerable delay would take place. The Agent-General was then instructed to authorise the whole of the capital being raised subject to the House passing the necessary legislation. The present, bill provided that shareholders holding stock should not be able to vote like ordinary shareholders of the bank. Mr Waul spoke on the whole subject at some lerg'h, and said that a groat impioveniem in the trade of the colony world result freon the raising ot the two mi I dors for the hank. He could assure the House * that tha second million had been rais'd for the purpose ot strengthening the position ot the bank, nod not in be spent by the Government in public, works as was alleged by the Opposition. lie thought the House should feel no .mxi'-ty or alarm as lo what would be done by the shareholders. The Government cimhl only hope that what; tio-y wo doing would enable the bank to carry on more wisely aud pruriently in too future tTuu had been the ease in the past. After considerable deb it" (,'splain Russell protested against the bid being disposed of in Mich a hasty manner and moved as an c-m >ridmenc "That the Bonk of Now Zealand Hliare Guarantee I Act Amendment Bill bo referred to o | joint committee of both Houses."

The debate was interrupted by the 5.31 adjournment. EVENING SITTING. The House resumed at 7.30. BANK OF NEW ZEALAND SHARE GUARANTEE BILL. After some farther discussion, in the conrse of which the Premier said thal although there was nothing to conceal in the mutter it was not advisable to ap point a committee to obtain information which it would not be proper to make public oa the fiior of the House, the amendment was put and lost by 41 to 13. Mr Ward in replying said that the Government had received cablegrams to the effect that the directors of the Bank of New Zealand in London were willing to confirm everything that was done by their representative here in connection with the original bill. He denied that the extra million was intended to be used for the ordinary finance of the Government. It was simply intended to strengthen the position of the bank. The motion for the second reading of the hill was then agreed to on the voices. BANK SHARES TRANSFER BILL. Mr Ward moved the second reading of the Bank Shares Transfer Bill, limiting the power of shareholders in banks to transfer their shares. He explained that the bill was merely meant to provide that no shareholder of a bank should have power to transfer his share to what might be called “a dummy” without the directors of the bank considering the application and giving their consent in writing. The motion was agreed to, BANK OF NEW ZEALAND SHARE GUARANTEE BILL. The House then went into committee on the Bank of New Zealand Share Guarantee Act Amendment Bill. Dr. Newman moved a new clause “ Thai no new branch of the bank shall he opened except in New Zealand.”— Lost by 44 to 8 The bill then passed with verbal amendments. BANK SHARES TRANSFER BILL. The House then went into committee on the Bank Shares Transfer Bill. A new clause was added, providing that the number of directors in a bank should be not less than five and not more than seven. The remaining clauses were agreed to. Goth bills were then read a third time and passed. AUCTIONEERS’ BILL. The Auctioneers’ Act Amendment Bill was read a third time and passed, STANDING ORDERS. The rest of the new Standing Orders were confirmed iu committee, and a committee was appointed to arrange them in their proper places. The House rose at 1.5 a.m.