THE WEEK.

Hawera & Normanby Star, Volume XXVII, Issue 2765, 6 July 1894, Page 2

THE WEEK.

The excitement over the Bank crisis and the legislation carried to avert, it has now calmed down, and the feeling of thankfulness at escape hag given place to criticism. It is easy to be wise after the event, and no doubt there will in the course of time be many suggestions as to what might have been done. Mr Trayers, a Wellington public man, objects very strongly to the manner injyhieh

the Bank put its hand on the throat of the colony, and save that had he been called on to deal with the crisis he would have made temporary arrangements with the three principal Australian banks, and then, having gained time, he would have passed " an Act authorising the Government to take immediate possession of the whole of the assets of the Bank of New Zealand in the colony, and to realise them with all convenient speed, and to apply the proceeds as they arose, firstly, in repayment of the Government deposit ; secondly, in repayment of private depouits and meeting bank-notes current ; and to hand the balance of money and unrealised asseta to the Banff. And when he had assured himself that the credit of the colony was safe, he would have told the Bank to take its hand off the throat of the colony."

Whetheb this would have been a workable scheme we do not know, but it would have taken time, and meanwhile any leakage or any failure would have precipitated the crisis. So far as can be Been the Government took the right course, indeed the only one open to them in the circumstances ; and the sting of present and future criticism must be in respect of the want of information which led to them being so completely cornered. The more the matter is thought of, the more astonishing is it that the Government should have been, in such profound ignorance up to the last moment. When the Governor's speech wbb delivered only a week previously they declared that the outlook was satisfactory, though, the London Times states that the negotiations had been going on for three months. If the negotiations had been pending for three months the causes which were making the position unsound must have been in active operation, and yet the Government knew absolutely nothing. This is very disquieting, and is a remarkable illustration of how little State papers may be reli d on now-a-days.

Thebe is another reflection which will not tend to strengthen confidence. If all the information was on one aide how could Ministers deal satisfactorily with the representative of the Bank? What power had they to check or canvass his demands P On one side is a man skilled in finance with complete information ; on the other men who certainly have not had financial experience or training, who had only such information as he chose to give them, and only such time as he chose to extend to them to give an answer. They were placed in a position in which they might sacrifice the colony by either refusiDg or complying with his request, and of their own independent knowledge they could not tell exactly what they ought to do. They chose to give the guarantee rather than run the rink of a commercial collapse. Public opinion will support them in their choice on the ground that no reasonable man in such a dilemma could have done otherwise. No wonder that the Treasurer has collapsed and other Ministers are ill. The strain must have been terrible, and while it continued surely it must have been borne in upon them how weak are the will and theories of politicians as against the great facts of finance and credit.

It seems to be generally accepted that the operation just completed virtually means a State bank. The Stats has become the guarantor, the State is to have a power of control ; though it does not appear that the State is to share in the profit if there be any. We doubt whether the arrangement made will meet the wishes of those who advocate a Slate bank. They wanted something very different— an institution which would manufacture money in a printing office, make notes as easily as theatrical "dodgers," and generally bring about a good time for people to whom the restraints of banks had been irksome. Ifc is curious tbat generally speaking tbe people who cried out for a State bank were the people who had least to do with the banks. But even those who are opposed to the generally accepted ideal of a State Bank, may very fairly admit that the proprietary or joint stock system has not worked well. Tbe history of the past year or two in Australasia, not to go further afield, is sufficient to Bhow that ; and events confirm the opinion we ventured a year ago that the whole banking system needs revision. It is not tolerable that the fortunes of a community may be risked by the foolishness of any few men who may get control of a bank or a number of banks. The banking law needs to be much more stringent ; and as the State, that is the whole people, has an immense concern in tbe banking arrangements, it should, through the executive, have very large powers of inspection and audit, and perhaps control. Even if this carried ultimately State guarantee the State j would not be exceeding its functions, j

The strike in America bids fair to exceed all others known in history, for its developments this week simply spell civil war. There is no otber name for it when a section of the people by force of arms stop commerce, smash railways and give battle to the troops of tbe (Government, and take them prisoners. In Australia things are not much better when buildings are fired, and men <v ho endeavour to save property are put in the fear of instant death. It is anarchy pure and simple.

In France, matters are settling down again. President Carnot has been carried to his long home, amid a spectacle, we are told, unparalleled in Pariß, which is a great deal, for what spectacles has Paris not seen? "We suppose that no city in the world has seen so many imposing ceremonies and stirring events, or whose annals have been so full of great incidents.

The Eew President has already been threatened, but that will not deter him Noblesse oblige. Even under the republican system blood tells, and if the Casimir-Perier of to-day have anything of the spirit *of Caei-mir-Perier of the last century, France will not degenerate under his rule. That other Perier was great in finance, one of the founders of the Bank of France, which, through strange vicissitude, has remained strong j he was a " safe " man m j party politics*. << _6qna | ?iY t&SH&SSSI}*

from absolutism on the one hand and extreme democracy on the other." As a young man he saw the terrors and evils of 1789, and be assisted, to moderate the violence of that of 1830. He was successful in foreign policy and not negligent of domestic matters, for it was in his efforts to enforce necessary sanitary measures at the time of the cholera visitation that he himself caught the disease and died. "No public man in France," the record says, " was ever so generally and sincerely lamented." The new President, therefore, comes of a good stock.

The cables would appear to show tbat free wool is secured by the Tariff Bill in the States. After a terribly lone: struggle the bill has passed through both Houses, and the freedom of wool has been agreed to by both, but various amendments have been made by tbe Senate in other lines, and the bill must go back to the House of Eepresentatives. "We presume that the procedure is similar to tbat between the two Houses of the British Legislature, and the failure to agree would mean the loss of the measure, but it is hardly hkely that that will occur af'er bo much trouble, and therefore it would appear that free wool is assured. Meantime it is gratifying to note that the English market shows better competition, and a distinct advance in price.