THAT TEN THOUSAND POUNDS.

Hokitika Guardian, 27 August 1926, Page 4

THAT TEN THOUSAND POUNDS.

(To the Editor.) Sir.—lt looks likely that during the next few days the Supplementary Estimates will be brought down in the House of Representatives and rushed through as speedily as the Chairman of Committee can read the totals of the various items. The Prime -Minister has *to be in London by a certain date and necessities of the situation will brook neither delay nor deliberate consideration. In these circumstances I would beg tile attention of the members of tbo House to a petition which lias been returned by one of their committees with a recommendation, that it he considered by the Government. The petition

I prays that the Government., which holds approximately one-third of the shores of tbo Bank of New Zealand, .should cover by a cash payment one-t'-ird of theHosses, amounting to some .1130.000. Certain depositors with the Wellington Farmers’ Meat and Mnnu\taeturing Company have suffered in consequence of the Bank forcing the Company into liquidation. Tt is not suggested that the Bank has acted with any impropriety towards the depositors or that the depositors have any claim in law or equity upon the

Government, which in tin’s case, means the taxpayers. The plain fact of the matter is that the depositors invested their money with the Company simply because it was offering a generous rate of interest and, as far as could be judged at the time, ample security. Many of the depositors were customers of the Meat Company and in addition to a generous rate of interest for their money received high prices for the stock they supplied to the Company. JTlie arrangement—with the customary trade risks on both sides, of course,—promised to be mutally satisfactory, and had it proved to be so there would have been no proposal to make any return to the State for excessive profits. *

The Chairman of the Committee to which the petition was referred, Mr J. A. Nash, a shrewd business man and a just one. has made it quite plain that he does not approve of the taxpayers being called upon to cover any part of the depositors’ losses. He pointed out in tile House when the petition was returned that if its prayer were granted Parliament would he deluged with such demands and would have difficulty in rejecting them with such, a precedent among the records. The fact that the petition was returned to the Gov-

eminent for “consideration,” however, suggests that strings arc being pulled and that some members of the Committee are disposed to accede to its prayer because it “such a little one” among the thousands and millions that are voted every year. Hut if there gentlemen would give a moment’s independent thought to the matter they would realise that such a payment ns the one that has been suggested would be a positive scandal and a. lasting reproach to the representative institutions of the country. The Government is no more responsible than the taxpayers are for what has happened and the House would have no sort of excuse—not even in the haste of Air Coates’s departure for saddling the country with any part, of iho losses the depositors have sustained as a result of their cupidity. T am. etc., TAXPAYER. Wellington, August 24th.