OUR LONDON LETTER.

New Zealand Herald, Volume XXVII, Issue 8361, 15 September 1890, Page 6

OUR LONDON LETTER.

[FROM our own CORRESPONDENT.]

London', August 9. A NEW SHIP FOR THE NEW ZEALAND TRADE.

Ox August "2 Messrs. W. Gray and Co. (Limited) launched, at West Hartlepool, a large steel screw steamer which has been built to the order of Mr. Christopher Furness,fortho New Zealand Steamship Company (Limited), of London. The vessel will take Lloyd's highest class, and her dimensions arelength overhaul, 376 feet 6 inches; breadth, 47 feet; depth, 29 feet 4 inches. The deck erections consist of a poop, bridge, and forecastle. Two complete iron decks are laid, and in way of the holds the web-frame system of construction has been adopted, while a cellular double bottom is fitted throughout the ship for water ballast. The saloon, captain and officers' accommodation, &e., will he tastefully fitted up in the poop; the engineers' accommodation is amidships, and the crew's berths forward. The arrangements for working the ship and handling cargo will be of the most efficient description, including patent direct steam windlass, steam steering gear, six steam winches, etc. A considerable portion of the ship will be insulated for carrying frozen meat from New Zealand, and two powerful refrigerators will be fitted in the 'tween decks. Fine triple expansion engines are being supplied by the Central Marine Engine Works of Messrs. W. Gray and Co. (Limited). The cylinders are 27 inches, 43 inches, and 72 inches diameter, with a piston stroke of 45 incites. The boilers are of the double-ended type, and are designed for a working pressure of 160lb per square inch. The ceremony of naming the vessel Tekoa was performed by Mrs. AleMullen, wife of Captain Me.Mullen. Thv. Tekoa is sister ship to the llangatira, lately launched by Messrs. Gray and Co. (Limited), and these are the largest vessels that have yet been built at the Hartlepools. LABOUR TRAFFIC IN THE SOUTH SEAS. In the Hons# of Commons last week Mr. Samuel Smith, the wellknown philanthropic member who sits for Flintshire, asked the Under-Secretary of State for the Colonies whether the attention of the Government had been called to a statement recently made by the Rev. John G. Paton, missionary, regarding slavery in the South Seas, wherein lie stated that the Presbyterian Mission Synod at Kwamera, Tanna.'New Hebrides, unanimously resolved that the Kanaka labour traffic had " to a large extent depopulated the New Hebrides and adjoining islands, upset family relations among the natives, and has been and is the cause of much sorrow, suffering, and bloodshed among them on the island that he had himself seen white men in their boats taking Kanakas to a labour vessel, and by force lifting them on board, and when they tried to leap overboard to swim ashore they were knocked down again and again on deck until they lay stupefied, and were so taken out to sea ; and that he had been on board a labour vessel which had all the stout Kanakas that were likely to escape or give any trouble fastened under irons, and that the crew of the vessel had shot an Erromangan chief dead while binding and taking his daughter away by force. They also shot one of his men who attempted to protect her, after which they took her on board the ship, and afterwards they shot dead one of the native Christian teachers; whether he was aware that this labour traffic, which was for a time suspended, had now been resumed with a probability of the recurrence of similar treatment, and whether, under the circumstances, the Government would endeavour to put an entire stop to this labour traffic in the interests of humanity? Baron de Worms replied that it was impossible to take any action upon Air. Patau's statement, unless Her Majesty's Government could be furnished with the names of the vessels and the colony from which they came, if they were British ships, together Jwith the dates of the occurrences. If these particulars could be supplied, the fullest inquiry should be made, with the view of bringing the perpetrators to justice, if possible. He was not aware that the traffic had been suspended, but by a law of 18S-3, it was provided that Polynesian labourers should not be introduced into Queensland after the end of this year. As regarded Fiji, which was understood to be the only other colony where that kind of labour was employed, no complaints of illtreatinent had reached the Colonial Office, and he did not see that Her Majesty's Government were called upon to interfere. THE MINING EXHIBITION AT THE CRYSTAL PALACE. The International Exhibition of Mining and Metallurgy, which was opened at the Crystal Palace on Monday, July 28th, by Lord Thurlow, is in effect a glorification of the mineral resources of New South Wales. It is much to be regretted that the other colonies did not enter into the affair with a little more enthusiasm. Queensland, in spite of its Mount Morgan mine, is most meagrely represented, and Victoria and New Zealand have only a few exhibits. South Australia is the colony which makes the best show next to New South Wales, but the latter quite carries off the palm, and as the Exhibition is well advertised, and is sure to be an attraction to the Palace, the British public are likely to conic to the conclusion that New South Wales is almost the only mineralproducing colony of the Australasian ( iron)). Most of the exhibits now on view at the New South Wales court at the Crystal Palace came straight from the New Zealand Exhibition. Indeed, Sir Saul Samuel says that had it not been that New South Wales minerals were well represented at the New Zealand Exhibition, they could not have been brought together in the time available for the show here. However, they have been brought together, and the result reflects the greatest credit upon Sir Saul Samuel, the lion. C. J. Roberts, Mr. Francis Abigail, P., Mr.C. S. Wilkinson, Mr.Came,and Mr. Oscar Meyer, who constitute the committee appointed by the Sydney Government to look after the interests of the colony at the Exhibition. The New South Wales Court contains some magnificent specimens of ore sent by the Minister of Mines and private companies, one of which is of the value of over a thousand pounds. 'The conspicuous column, 70 feet high, surmounted by a figure of Atlas supporting the world, representing the total silver production of the Broken Hill Proprietor, Company's mine from May, 1886, to July, 1890, amounting to 16,500, is alone sufficient to attract the attention of the casual visitor to the New South Wales Court. There is also a large display of iron, copper, and tin ores, coal, magnetite, hematite, stone and various hard woods suitable for building purposes. The splendid show made by New South Wales formed the subject of much comment at the complimentary functions which preceded and attended the opening of the Exhibition; and on Thursday of last week, when the Earl of Jersey, the new Governor of New South Wales, Lady Margaret Villiers, and Lord Knutsford paid a visit of inspection to the New South Wales Court and other portions of the Exhibition. They expressed the greatest surprise at the wonderful mineral resources of the senior colony. The New Zealand exhibits are located in the south and west galleries. They consist of ninety-seven specimens of alluvial gold, six specimens of nuggets, two specimens of beach gold, two specimens of retorted gold, one specimen of platinum, fifteen metalliferous ores, and three specimens of bullion from ores. Some of the specimens of gold quartz from New Zealand exhibited by Mr. Olaf Jansen are particularly rich in the precious metal. The Exhibition is proving an attraction to the general public, and is drawing over geological and mining students from Germany, Austria, and other Continental countries. Some of these latter have been allowed to take away specimens of the ores. When this became known a visitor presented himself to Mr. Rosewarne, of the South Aus- | tralian section, and told that gentleman that ; he should like to take away as a specimen j the bar of solid gold on view in the South I Australian Court, which is estimated to be |

worth upwards of £6000. The South Australian Commissioner smiled at him, and said he thought not.

THE BANK OF NEW ZEALAND.

The Economist, commenting in a recent issue upon the re-organisation of this Bank, considers the security which the Bank of New Zealand Estates Company, Limited, has provided for the £1,500,000 debentures offered to the public through Messrs. Shroder and Co., to be fairly sufficient, while the rate of interest is certainly high. Altogether, the debentures offer something over 6 per cent, to the purchaser. At the same time, the Economist thinks that the Bank is paying a high rate for the £1,350,000 or £1,400,000 cash which it appears likely to obtain as the result of the issue. "At 103 the Bank of New Zealand through the Estates Company contracts to pay £1,545,000, and therefore apart from the interest it may gathered that £150, or £200,000 of any future rise in the value of these assets is pledged to the debenture-holders. Beyond this there is the working of the company itself to be provided for; but the Bank of New Zealand does not relinquish its entire interest in the globo assets. There will be allotted to the Bank 60,(XX) six per cent, preference shares of £10 each, which amounts to £000,000, and 125,000 ordinary shares of £10 each, amounting to £1,250,(XX), making a total of £1,850,000 which represents tho entire share capital with the exception of 15,000 preference shares not now to be allotted. As matters stand, therefore, the Bank nominally receives in cash and securities £3,200,000, or a trifle more, for these ' globo assets but then tho value of the ordinary shares appears to us to be problematical. If the income did not rise above last year's £117,075, and we allowed only £10,(XX) for working expenses, there would remain only £24,575 wherewith to pay 4 per cent. 011 the preference shares, leaving nothing for the ordinary, and it appears doubtful whether, for some years at any rate, the ordinary shares will get anything. It is advisable, therefore, to take the ordinary shares as being worth a good deal less than their face value, and the Estates Company hands tho Bank value to not more than £2,700,000 for these 'globo' assets. Whether this sacrifice, as compared with £3,100,000, at which the assets were valued by Mr. Hean, was or was not an advisable one under the circumstances must depend upon surrounding conditions. It was so well known that the Bank of New Zealand was saddled with this lock-up, and the late chairman, Mr. Buckley, had so advertised the fact, that these securities were greatly depreciated, that it was of material value to the Bank to be rid of them. By this transfer the Bank of New Zealand renders a laige part of this lock-up liquid, and the balance is within reasonable proportions. Hence there are material advantages in the arrangement which may be set against the disadvantage to which we have referred. The main question for the Bank is whether the issue of the debentures, with the security offered, could not have been effected 011 less onerous terms."

"There is another reason," proceeds the Economist, " why the assets should be rendered as liquid as possible. It was essential that the head office should be removed from Auckland, where the bulk of the losses were incurred. The gross mismanagement of the late Board, and the dissensions amongst those who succeeded them, made control from London not only advisable but necessary. The London directors have, apparently, made it a preliminary that the position of the institution should be no longer subject to attacks like that recently made by Mr. Buckley, and the present Bank of New Zealand Estates Company (Limited) is the result. But though the past mismanagement of this Bank, and abuse of the powers of the directorate have done so much by locking up capital and by losses to impair its position, we must confess to a feeling of doubt whether such heavy locks-lip were, or are, solely the attribute of the Bank of New Zealand. Other Banks, undoubtedly, hold lauded properties both in Australia and New Zealand, properties which have originally been pledged to them as collateral security and of which they are now the registered owners, or it may be that they have secured their position better than the Bank of New Zealand did, by making their original margins more substantial. A work which recently reached us . from another colony showed one well-known bank to be the registered proprietor of upwards of 100 estates, and other banking institutions also figure as large holders of landed property. Advances on land constitute the principal financial business in these colonies, and it must be difficult, even with great care, to insure money remaining liquid when advanced 011 such security. These institutions happily secure a largo portion of their deposit resources on terms which prevent a sudden drain, and this is a necessity of the situation. But it is not ordinary banking as we understand it in the United Kingdom."