BANK OF NEW ZEALAND BILL.

Manawatu Standard, Volume XLI, Issue 9587, 3 September 1913, Page 5

BANK OF NEW ZEALAND BILL.

INTERESTING DEBATE.

The Bank of New Zealand Bill wa« in troducod into the House last night by Go vernor'e message. Hon. James Alkm explained that fch< Bill proposed to make no aHe ration in th* constitution of tho Board; to continue th< million guarantee; to arrange for tho re demotion of that stock in twenty years; to allow the bank to increase ite capital bj £3,000,000, but not witKout tho consent o. the Minister for Finance. Power ie givex tho Crown to purchase B preference sliares No vote is given to the State, but the powei of veto ig retained.

Sir Joseph Ward criticised the proposa 1 to make the Crown pay a premium of 5f |>er cent on preference shares purchased b> the Crown. He also condemned giving [Kjwor to raise £3.000.000 extra capital with out again coming before the House. Mr Wilford contended that tho State must retain interest in the bank, and so con tro| the relation between the rate of inter est paid by customers on overdrafts and bj tlio bank on deposits, aleo to regulate th« prioo of shares and the rate of dividend: paid. Mr Millar maintained that State capita made tlie Wank, and it was unfair to tshare holders now to try and get rid of the State The Bill was introduced entirely in the in terests of the shareholders, and he woulc resist it to the bitter end in its present form.

Mr Allen, in reply, said it was intended to refer the Bill to the Public AccountCommittee and also treat the Bill as a non party measure. He dm not think it wise as Sir Joeeph Ward Suggested, that tlu bank should come to tho House every tim« it wanted fre*h capital. He warned mem bers against raising tlie cry of "State Bank'' at this juncture. The time might con* when they could start a bank on a Stat* ba*is, but that time was not now. Tho Bill was read a first time.