MR MURRAY'S MEMORANDUM.

Hawera & Normanby Star, Volume XXVII, Issue 2761, 2 July 1894, Page 2

MR MURRAY'S MEMORANDUM.

Mr Murray has famished the following memorandum to the Press Association :— " A variety of adverse conditions which have in the last year or two, more especially in the last year, injuriously affeoted the producing interests of the colony have of necessity reflected on its chief banking institutions. Shares in the Bank of New Zealand becams greatly depreciated in the market, and rumors were persistently put about to the effect; that tbe situation was .unsatisfactory and migbtat any time have become' dangerously accentuated. Under the oiroamstances I recommended to the direotors that Government be consulted. To this they agreed, and asked me to represeat them. Tbe Government at onoe reoognjaed the importance of placing the 'bank upon a thoroughly substantial footing, and it was determined to ask the Legislature to authorise a colonial guarantee to an issue of two millions oi fresh capital, all to be paid up, giving a total paid up capital of £2,900.000, besides '£1,000,000 of reserve liability, still to fall making the Bank of New Zealand dhe'of.thß' strongest banks in the colonies. Shareholders may rely upon it that the measure is in their best interests as well as in thoß&of ' tbe colony. Their shares are now l macb^depreciat6^ a^d hadthehank been left "to drift, worse have followed. I cannot foresee prices and seasons nor conditions which make prosperity, bafc I am persuaded that better times taust come. The operation now arranged pro. sTH?v*eS to 'shareholders tbe entire^ good will of their business, which an ordinary issue of sHaifes would not nave done, and while -A

Lome sacrifices are for the present inevitible I am confident that the ultimate jutcoma will be the reinstatement of shares not merely to par value bat to a premium, whereby these saorifiofs will be in a good measure reooapeoV.'&ir/'