THE AMALGAMATION OF THE BANKS. TO THE EDITOR.

North Otago Times, Volume XXXVII, Issue 8085, 25 September 1894, Page 3

THE AMALGAMATION OF THE BANKS. TO THE EDITOR.

Sin, — Tho merits of iho Bank of Now Zealmd and Colonial Bank amalgamation schomo from tho points of viow of a bank shareholder and a member of tho Btato respectively [have been fully discussed ; but, so far.as I have scon, vory fow seom to have approached tho subject from a depositor's standpoint;. I take it that uridor present circumstances, with tho largo resorvo liability on tho shares of tho thrco Now Zealand bankfl, via,, Bank of Now Zealand, Ll,500,000: Colonial Bank, Lb'00,000; and National Bank, LDQO.CJO ; in addition to tho paid-up capital in each case, a dopoaitor is quite safe in depositing his money. In the eato of tho Bank of Now Zealand and Colonial Bank depositors, however, the position will be altogether different if the schome for amalgamation is carried out as proposed, and tho word Limited must then bo *• writ very largo." Shares in this conoorn are by a stroke of tho pen shorn of thdir reaorve liability as regards tho Colonial Bank, and, as regards the Bank of New Zealand, tho Government, I believe, with its L 2,000,000 claim, havo a first charge. Whatovor may bo tho rnotivo, this wiping out of liability on shares, whilo deposits remain undrawablo in both banko, is surely tho work of novices in finance, A true financier would havo respected the legal rights of depositors as woll as thoso of shareholders.— l am, etc , FtNAWCIKJR.