THE BANKING INQUIRY.

Nelson Evening Mail, Volume XXX, Issue 183, 5 August 1896, Page 2

THE BANKING INQUIRY.

A VICTORIAN VJffiW,

Commenting on the fining of Mr Watson, in connection with the Banking Committee, the Melbourne "Argus" says :— Already the semi-connection between the local Government and the Bank of New Zealand has created a situation. And a dramatic situation it is. Because there is trouble about that confident politioau, but unfortunate speculator, MrJ. G. Ward, and an investigation, not only of his, but of other accounts, is ordered by Parliament. A good deal of angry fueling and of a desire for revenge, to be satisfied by showing up people, evidently enters into the business. And Parliament suddenly finds itself blocked by the resolute attitude of the manager, the directors, and the officers of the institution, i he' officers give a pledge of seorecy when they enter the bank, and Mr Watson and' his colleagues do not intend to throw aside this obligation. The inquiry is a fishing inquiry. No charges are made, but the politicians desire to get behind the scenes to see whether there is anything they can turn to party aocount. And the bank officers' decline to become parties tv any such dubious investigation.. It would be a breach of faith with their olienta,- they say, if they consented ; customers would not care about entrusting their accounts and their business to such an institution in the future j disclosures would be magnified and misunderstood, and might be worked up to create first alarm and then a panic. And in all | this the officers will have the sympathy of the publio and the full approval of business men. After all, though the Government of New Zealand has advanced money heavily to the Bank, it is not entitled to stand in any better position than are depositors and shareholders generally, and if shareholders and depositors asked for a publication of tho particulars of the business they would be necessarily met with a refusal A public investigation is always liquidation. And oven a liquidator does not gratify moro ouriosity.and nq honest liquidator would allow himself to he used as a political tool. The episode, however it ends, will have itß usos. It throws a sidelight on what state banking must be. Is it because commercial banking discounting of bills and the granting of overdrafts —is tho last bnsiness which a Government ought to touch, that a plunge into it has for some pepplo au irresistible fascination 1